Ellsworth's Utility Function Is U(x, Y)= Min{x, Y}

question 25

Multiple Choice

Ellsworth's utility function is U(x, y) = min{x, y}.Ellsworth has $150 and the price of x and the price of y are both $1.Ellsworth's boss is thinking of sending him to another town where the price of x is $1 and the price of y is $2.The boss offers no raise in pay.Ellsworth, who understands compensating and equivalent variation perfectly, complains bitterly.He says that although he doesn't mind moving for its own sake and the new town is just as pleasant as the old, having to move is as bad as a cut in pay of $A.He also says he wouldn't mind moving if when he moved he got a raise of $B.What are A and B?

• A)A = 50 and B = 50.
• B)A = 75 and B = 75.
• C)A = 75 and B = 100.
• D)A = 50 and B = 75.
• E)None of the above.

Grasp the foundational principles of the multiplier effect and its impact on national income and employment levels.

Identify and evaluate the mechanisms and effectiveness of discretionary fiscal policy in managing economic cycles.

Recognize the structure and consequences of the national (federal) debt and public debt.

Analyze the influence of fiscal policy on economic stability, growth, and employment through government spending, taxation, and transfer payments.

---

Definitions:

Job Satisfaction

The level of contentment individuals feel with their job roles, encompassing aspects like work environment, duties, and compensation.

Employment Standards Legislation

Laws that define the rights and responsibilities of employees and employers, including minimum wage, working hours, and safety regulations.

Employee

describes an individual who works part-time or full-time under a contract of employment, contributing to the business in exchange for compensation.

Contractor

An individual or company that undertakes a contract to provide materials or labor to perform a service or do a job.