In Problem 3, Suppose Lawrence, a Typical Citizen, Has the Utility

question 20

Multiple Choice

In Problem 3, suppose Lawrence, a typical citizen, has the utility function U(m, d, h) = m + 7d² - d² - 4h, where d is the number of hours per day that he spends driving around, h is the average number of hours per day spent driving around by other people in his home town, and m is the amount of money he has left to spend on other stuff besides gasoline and auto repairs. Gas and auto repairs cost $1 per hour of driving. If each citizen believes that their own driving will not affect the amount of driving done by others, they will all drive D₁ hours per day. If all citizens drive to maximize the utility of a typical citizen, they will all drive D₂ hours per day, where

• A) D₁ = 5 and D₂ = 2.
• B) D₁ = D₂ = 3.
• C) D₁ = 3 and D₂ = 1.
• D) D₁ = 6 and D₂ = 0.
• E) D₁ = 3 and D₂ = 0.

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Definitions:

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, leading to an increased interconnectedness of the world's economies, cultures, and populations.

Anti-globalization

A movement opposing economic globalization, advocating for protections of national industries, the environment, and cultural identity.

Imperialism

A policy or practice of extending a country's power and influence through colonization, use of military force, or other means.

Homogenizing

In the context of social sciences, homogenizing refers to the process of making things uniform or similar, often by minimizing or eliminating differences.