Consider the Utility Function U = 5x +3y², Which Has $M R S_{x, y}$

question 24

Multiple Choice

Consider the utility function U = 5x +3y², which has MU_x = 5 and MU_y = 6y. The indifference curves for this utility function

• A) will be straight lines.
• B) will have the same \( M R S_{x, y} \) as y increases holding x constant.
• C) will have the same \( M R S_{x, y} \) as x increases holding y constant.
• D) will have a diminishing marginal rate of substitution as the consumer substitutes x for y .

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Definitions:

Long-term Loss

The loss realized from the sale of an asset held for more than one year, which can offset long-term gains for tax purposes.

Capital Gain

The profit made from the sale of a capital asset, like real estate or stocks, that exceeds the purchase price.

Worthless

Pertaining to an asset that has lost all monetary value.

Short-term Loss

A monetary deficit incurred from the sale or trade of an asset owned for less than a year.