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:

Agricultural Societies

Societies primarily based on farming and cultivation of land as the main source of livelihood and sustenance, typically featuring a rural lifestyle.

Social Structure

An organized pattern of societal institutions and relationships that together compose a society, dictating individuals' roles and interactions.

Social Relationships

Connections or associations between two or more individuals based on mutual interdependence, ranging from formal relationships to intimate or familial bonds.

Social Institutions

Structures in society that govern the behavior of individuals within a community, including family, education, religion, and government.