Harvey Habit Has a Utility Function U(c₁, C₂)= Min{c₁, C₂}

question 2

Multiple Choice

Harvey Habit has a utility function U(c₁, c₂) = min{c₁, c₂}.If he had an income of $430 in period 1 and $860 in period 2 and if the interest rate were 15%, how much would Harvey choose to spend on bread in period 1?

• A)$945
• B)$210
• C)$315
• D)$1,260
• E)$630

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Definitions:

Alfred Adler

An Austrian medical doctor, psychotherapist, and founder of the school of individual psychology, known for emphasizing the importance of feelings of inferiority and the creative self in the development of personality.

Karen Horney

A prominent psychoanalyst known for her theories on neurotic personality, which diverged from Freud's perspectives, emphasizing socio-cultural factors in human development.

Compulsive Masturbator

An individual who engages in masturbation with such frequency and intensity that it causes significant distress or impairment in daily functioning.

Phallic

Pertaining to the phallus or penis, often used in psychoanalytic theory to describe the stage of psychosexual development focused on the genital organs.