On the Planet Homogenia Every Consumer Who Has Ever Lived

question 7

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 4 fragels and the price of good 2 was 2 fragels.The Laspeyres price index for the price level in 2000 relative to the price level in 1900 is

• A)4.50.
• B)2.50.
• C)2.
• D)3.
• E)not possible to determine from this information.

Understand the principles of natural selection and its relevance to human evolution.

Understand the basic functions and characteristics of money.

Identify the regulatory bodies and mechanisms governing banks and their significance.

Recognize the impact of interest rates and incomes on the demand for money.

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Definitions:

Null Hypotheses

In statistical analysis, it is a statement proposing that no significant difference or effect exists in a certain condition or characteristic being studied.

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Null Hypotheses

A default assumption that there is no significant difference or relationship between specified populations, often tested against an alternative hypothesis.

Alternative Hypotheses

In statistical hypothesis testing, the hypothesis that proposes a difference or effect, contrasting the null hypothesis.