Suppose a Consumer's Utility Function Is U(F₀,F₁)= F₀⁰

question 18

Multiple Choice

Suppose a consumer's utility function is U(F₀,F₁) = F₀^0.6F₁^0.4,where F₀ represents food consumed this year and F₁ represents food consumed next year.For that utility function,the marginal utility of food consumed this year is 0.6 × (F₁/F₀) ^0.4 and the marginal utility of food consumed next year is 0.4 × (F₀/F₁) ^0.6.Which of the following expressions gives the consumer's marginal rate of substitution for food this year with food next year (MRS₀₁) ?

• A) MRS₀₁ = F₁/F₀
• B) MRS₀₁ = (2/3) × (F₀/F₁)
• C) MRS₀₁ = (2/3) × (F₁/F₀)
• D) MRS₀₁ = (3/2) × (F₁/F₀)

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Definitions:

Psychoanalytic Approach

A theory and method of psychiatric treatment that emphasizes unconscious processes and conflicts as the sources of mental disorder and psychological distress.

Psychopathology

The examination of mental illnesses focusing on their symptoms, origins, and therapeutic approaches.

Defense Mechanism

Psychological strategies brought into play by the unconscious mind to manipulate, deny, or distort reality in order to defend against feelings of anxiety and unacceptable impulses and to maintain one's self-schema.

Freudian Theory

A set of psychoanalytic theories developed by Sigmund Freud, which emphasize the importance of unconscious processes and childhood experiences in shaping personality and behavior.