Joe Bob Has a Cousin Pete Who Consumes Goods 1

question 20

Multiple Choice

Joe Bob has a cousin Pete who consumes goods 1 and 2.Pete thinks that 3 units of good 1 is always a perfect substitute for 4 units of good 2.Which of the following utility functions is the only one that would not represent Pete's preferences?

• A)U(x₁, x₂)= 40x₁ +30x₂ -10,000.
• B)U(x₁, x₂)=4x₁ +0 3x₂ + 1000.
• C)U(x₁, x₂)= min{4x₁, 3x₂}.
• D)U(x₁, x₂)=16x²₁ + 24x₁x₂ + 9x²₂.
• E)More than one of the above does not represent Pete's preferences.

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Definitions:

Acute Illness

A disease or condition that comes on quickly and can be severe, but is usually short-lived.

Health Care Spending

Financial expenditures related to maintaining, restoring, or enhancing an individual's health.

Physician

A qualified individual who practices medicine, diagnosing and treating diseases, injuries, and other physical and mental impairments.

Hospital

A healthcare institution providing patient treatment with specialized medical and nursing staff and medical equipment.