Kenny Kink's Utility Function Is U(c₁, C₂)=min{c₁, C₂}, Where C₁

question 15

Multiple Choice

Kenny Kink's utility function is u(c₁, c₂) =min{c₁, c₂}, where c₁ is his consumption in period 1 and c₂ is his consumption in period 2.He earns $200 in period 1 and $220 in period 2.Kenny can borrow and lend at an interest rate of 10%, and there is no inflation.The number of dollars that Kenny spends on consumption in the first period must be

• A)more than 200 but less than 220.
• B)exactly 200.
• C)more than 220.
• D)exactly 180.
• E)more than 180 but less than 200.

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Definitions:

Sustainable Ecosystem

An ecosystem that is capable of maintaining its productivity, diversity, and overall functionality over time, usually by balancing conservation and renewal practices.

Restoration Ecology

A branch of ecology focused on the repair of damaged or destroyed ecosystems through active human intervention and the reestablishment of their pre-disturbance conditions.

Wildlife

Undomesticated animals living in natural habitats, including forests, deserts, grasslands, and bodies of water.

Coastal Degradation

The deterioration of coastal areas due to human activities or natural processes, leading to loss of ecosystems and habitats.