Joe Bob Has a Cousin Don Who Consumes Goods 1

question 9

Multiple Choice

Joe Bob has a cousin Don who consumes goods 1 and 2.Don thinks that 3 units of good 1 is always a perfect substitute for 2 units of good 2.Which of the following utility functions is the only one that would not represent Don's preferences?

• A)U(x₁, x₂)=min{2x₁, 3x₂}.
• B)U(x₁, x₂)=20x₁ + 30x₂ + 10,000.
• C)U(x₁, x₂)=2x₁ + 3x₂ + 1000.
• D)U(x₁, x₂)=4x²₁ + 12x₁x₂ + 9x²₂.
• E)More than one of the above does not represent Don's preferences.

---

Definitions:

Stoics

Adherents of Stoicism, a school of philosophy that emphasizes resilience, ethical living, and the belief that virtue is sufficient for happiness.

Indifferent

Showing no particular interest or concern; apathetic or uninterested.

Ayn Rand

A Russian-American novelist and philosopher known for her philosophy of Objectivism and her novels advocating individualism and capitalism.

Theory

A logical explanation or framework for understanding how various aspects of the world relate to each other.