Recall Lucy and Melvin from Problem 6

question 20

Multiple Choice

Recall Lucy and Melvin from Problem 6. Lucy's utility function is 2X_L + G and Melvin's utility function is X_MG, where G is their expenditures on the public goods they share in their apartment and where X_L and X_M are their respective private consumption expenditures. The total amount they have to spend on private goods and public goods is $39,000. They agree on a Pareto optimal pattern of expenditures in which the amount that is spent on Lucy's private consumption is $9,000. How much do they spend on public goods?

• A) $9,550
• B) $20,000
• C) $5,000
• D) $10,000
• E) There is not enough information here to be able to determine the answer.

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Definitions:

Left Cerebral Hemisphere

The left side of the brain, generally responsible for tasks involving logic, language, and analytical thinking.

Arithmetic Problems

Mathematical questions or tasks involving operations such as addition, subtraction, multiplication, and division.

Angular Gyrus

A region of the brain located in the parietal lobe, involved in processing language, numbers, and spatial cognition, among other functions.

Cortex

The outer layer of the cerebrum of the brain, involved in complex functions including memory, attention, perception, cognition, awareness, thought, language, and consciousness.