On the Planet Homogenia, Every Consumer Who Has Ever Lived

question 19

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 72 fragels.In 2000, the price of good 1 was 5 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)3.50.
• B)2.33.
• C)3.
• D).5.50.
• E).It is not possible to determine the Laspeyres price index from this information.

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Definitions:

Innate Human Characteristic

Traits or abilities that are present in humans from birth, not acquired or learned through experience.

Universal

Pertaining to or applicable to all members of a class, group, or category.

Species-specific Trait

A characteristic or behavior that is unique to a particular species, distinguishing it from other species.

Steven Pinker

A cognitive psychologist and linguist known for his work in language and human nature, advocating for the importance of science and reason.