A Parent Has Two Children Living in Cities with Different

question 8

Multiple Choice

A parent has two children living in cities with different costs of living.The cost of living in city B is 3 times the cost of living in city A.The child in city A has an income of $3,000 and the child in city B has an income of $9,000.The parent wants to give a total of $2,000 to her two children.Her utility function is U(C_A, C_B) =C_AC_B, where C_A and C_B are the consumptions of the children living in cities A and B respectively.She will choose to give

• A)the child in city B 3 times as much money as the child in city A.
• B)the child in city B 1.50 times as much money as the child in city A.
• C)the child in city A 3 times as much money as the child in city B.
• D)each child $1,000, even though this will buy less goods for the child in city B.
• E)the child in city A 1.50 times as much money as the child in city B.

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Definitions:

Carl Rogers

An influential figure in psychology known for developing the person-centered approach to therapy, emphasizing the importance of unconditional positive regard.

Empathetic Therapist

A mental health professional who possesses the ability to understand and share the feelings of their clients.

Person-centered

refers to an approach in psychology and therapy that emphasizes the importance of the individual's own experience and self-discovery, pioneered by Carl Rogers.

Unconditional Positive Regard

An approach in certain types of psychotherapy where the therapist offers clients acceptance and positive support, regardless of what the client says or does.