Suppose Albert, a Typical Citizen, Has the Utility Function U(m

question 19

Multiple Choice

suppose Albert, a typical citizen, has the utility function U(m, d, h) = m + 5d² - d² - 2h, where d is the number of hours per day that he spends driving around, h is the average number of hours per day spent driving around by other people in his home town, and m is the amount of money he has left to spend on other stuff besides gasoline and auto repairs.Gas and auto repairs cost $1 per hour of driving.If each citizen believes that their own driving will not affect the amount of driving done by others, they will all drive D₁ hours per day.If all citizens drive to maximize the utility of a typical citizen, they will all drive D₂ hours per day, where

• A)D₁ = 5 and D₂ = 0.
• B)D₁ = D₂ = 2.
• C)D₁ = 2 and D₂ = 1.
• D)D₁ = 4 and D₂ = 2.
• E)D₁ = 2 and D₂ = 0.

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Definitions:

Harmony

A pleasing combination or arrangement of different things, often referring to music, but also applicable to social and personal contexts.

Just-World Hypothesis

The cognitive bias or belief that the world is fundamentally fair, leading individuals to rationalize an otherwise inexplicable injustice as deserved by the victim.

Social Group

A collection of individuals who interact with each other and share similar characteristics and a sense of unity.

Punished

The act of imposing a penalty or negative consequence on someone as a response to an undesirable behavior or action.