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

question 25

Multiple Choice

Harvey Habit has a utility function U(c₁, c₂) = min{c₁, c₂}.If he had an income of $645 in period 1 and $1,290 in period 2 and if the interest rate were 15%, how much would Harvey choose to spend on bread in period 1?

• A)$1,417.50
• B)$315
• C)$1,890
• D)$472.50
• E)$945

Recognize the role of learned needs in motivation.

Understand the fundamental concepts of Maslow's hierarchy of needs and its division into deficiency and growth needs.

Recognize the differences in motivation theories, including Maslow's needs hierarchy, McClelland's learned needs model, and Herzberg's motivator-hygiene model.

Distinguish between intrinsic and extrinsic motivation factors as per Herzberg’s model.

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Definitions:

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