On the Planet Hyperion Every Consumer Who Has Ever Lived

question 25

Multiple Choice

On the planet Hyperion every consumer who has ever lived has a utility function U(x, y) = min{x, 2y}.The currency of Hyperion is the doggerel.In 1850 the price of x was 1 doggerel per unit and the price of y was 2 doggerels per unit.In 2000, the price of x was 4 doggerels per unit and the price of y was 4 doggerels per unit.Paasche price index of prices in 2000 relative to prices in 1850 is

• A)1.
• B)2.67.
• C)2.
• D)3.
• E)not possible to determine without further information.

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Definitions:

Civilize

The process or act of bringing a society to a stage of social, cultural, and moral development considered to be more advanced, often viewed critically as implying supremacy over other cultures.

Americanized

The process through which non-American cultures, practices, or individuals become assimilated or adapted to American customs and values.

European-American

An individual residing in the United States who has European ancestry or heritage.

Racial Democracy

A concept or belief in a society where racial equality has been achieved, often critiqued for masking underlying racial inequalities.