On the Planet Homogenia Every Consumer Who Has Ever Lived

question 3

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 108 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)2.33.
• B)2.50.
• C)4.
• D)3.50.
• E) not possible to determine from this information.

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Definitions:

Muscle Power

The ability of a muscle or group of muscles to exert force in a short period of time, important for quick, explosive movements.

Optimal Force

The best or most efficient level of force that muscles can produce to perform an activity or task effectively without injury.

Prolonged Period

An extended duration of time that goes beyond what is normal or expected.

Muscle Endurance

The ability of a muscle or group of muscles to perform repetitive contractions over a period of time without becoming fatigued.