Pierre's Friend Jacques Lives in a Town Where He Has

question 20

Multiple Choice

Pierre's friend Jacques lives in a town where he has to pay 3 francs per glass of wine and 3 francs per loaf of bread.Jacques consumes 8 glasses of wine and 4 loaves of bread per day.Recall that Bob has an income of $15 per day and pays $.50 per loaf of bread and $2 per glass of wine.If Bob has the same tastes as Jacques and if the only thing that either of them cares about is the consumption of bread and wine,

• A)there is not enough information to determine whether one is better off than the other.
• B)both of them violate the weak axiom of revealed preferences.
• C)Jacques is better off than Bob.
• D)Bob is better off than Jacques.
• E)Bob and Jacques are equally well off.

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Definitions:

Token of Good Faith

An action or item provided to show sincerity and intention to engage in a deal or relationship honestly.

Scapegoat

Individual or group that becomes the target for anger and frustration caused by a different individual or group or some other set of circumstances.

Frustration-Aggression Hypothesis

A psychological theory proposing that aggression is often the result of blocking, or frustrating, a person's efforts to attain a goal.

Catharsis

The process of releasing, and thereby providing relief from, strong or repressed emotions, often through art, drama, or verbal expression.