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:

Internal Consistency Reliability

A measure of how well the items in a test measure the same concept or construct, indicating the extent to which all items in a test contribute equally to the final score.

Parallel Forms Reliability

The consistency of scores on two different but equivalent forms of the same test, assessing the consistency of results over different versions of instruments.

Test-Retest Reliability

The consistency of a measure or test over time when administered to the same individuals under identical conditions.

Interrater Reliability

The degree of agreement among raters or judges, showing how consistently they observe and scoring a phenomenon.