Arthur's Preferences Are Defined Over Two Basic Food Groups, Beer

question 64

Multiple Choice

Arthur's preferences are defined over two basic food groups, beer, x₁, and ice cream, x₂.His utility function is u(x₁, x₂) =x²₁+ x₂.He has $100 to spend, and each of these goods costs $10 per quart.

• A)Arthur will consume 5 quarts of ice cream and 5 quarts of beer.
• B)Arthur will find that 10 quarts of beer and no ice cream is the best bundle.
• C)Arthur will find that 10 quarts of ice cream and no beer is the best bundle.
• D)Arthur is indifferent between any two points on the line that connects (5, 5)and (10, 10).
• E)Arthur will spend 2/3 of his income on beer and 1/3 of his income on ice cream.

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Definitions:

Duty to Account

An obligation to provide a detailed report of financial transactions or holdings.

Duty to Maintain

The obligation to keep property, equipment, or systems in good working condition through regular care, repair, and upkeep.

Implied Authority

The authority of an agent to perform acts which are reasonably necessary to accomplish the purpose of an organization.

Express Authority

Legal authority granted explicitly in a document or spoken agreement, allowing individuals or entities to perform certain acts.