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

question 26

Multiple Choice

Harvey Habit has a utility function U(c₁, c₂) = min{c₁, c₂}.If he had an income of $420 in period 1 and $1,050 in period 2 and if the interest rate were 10%, how much would Harvey choose to spend on bread in period 1?

• A)$240
• B)$360
• C)$1,440
• D)$1,080
• E)$720

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Definitions:

Personality Psychologists

Specialists who study the characteristics that make individuals unique, including particular patterns of thoughts, behaviors, and emotions.

Cultural Characteristic

Attributes, values, and norms that are shared by a group of people and help to define their culture.

Sensitivity to Threats

The heightened responsiveness or vigilance to potential dangers or threats in one's environment.

Reputation

The common opinion about an individual's or organization's character, qualities, and achievements, often considered a valuable social resource.