Raymond's Preferences Are Represented by the Utility Function U(x, Y)=

question 3

Multiple Choice

Raymond's preferences are represented by the utility function U(x, y) = x/y if y > 0 and U(x, y) = 0 if y = 0.

• A)Raymond has indifference curves that are rectangular hyperbolas.
• B)Raymond prefers more of each good to less.
• C)Raymond has quasilinear preferences.
• D)Raymond has a bliss point.
• E)Raymond has indifference curves that are upward-sloping straight lines if y > 0.

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Definitions:

Actuarial Present Value

Actuarial Present Value is the calculation of the current value of future cash flows or payments, taking into account factors such as mortality rates and interest.

Accumulated Benefit Obligation

The present value of future retirement benefits earned up to a certain point in time, under a defined benefit pension plan.

Prior Service Cost

Costs recognized when a pension plan initiates or changes, relating to services provided by employees in prior periods.

Net Periodic Pension Expense

The total cost recognized in a particular period related to pension plans, reflecting service cost, interest cost, expected return on plan assets, and other factors.