On the Planet Homogenia Every Consumer Who Has Ever Lived

question 24

Multiple Choice

On the planet Homogenia every consumer who has ever lived consumes only two goods, x and y, and has the utility function U(x, y) = xy.The currency in Homogenia is the fragel.In this country in 1900, the price of good 1 was 1 fragel and the price of good 2 was 2 fragels.Per capita income was 84 fragels.In 2000, the price of good 1 was 3 fragels and the price of good 2 was 4 fragels.The Laspeyres price index for the price level in 2000 relative to the price level in 1900 is

• A)2.50
• B)3.50.
• C)2.33.
• D)4.
• E)not possible to determine from this information.

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Definitions:

Psoriasis

A chronic skin condition characterized by red, inflamed patches covered with silvery scales resulting from an accelerated lifecycle of skin cells.

Silvery Scales

often describes skin conditions or features of animals where the skin or outer covering appears shiny and flake-like.

Basal Cell Carcinoma

A type of skin cancer that begins in the basal cells—cells within the skin that produce new skin cells as old ones die off.

Squamous Cell Carcinoma

A type of skin cancer that arises from the squamous cells, which are flat cells found in the outer layer of the skin.