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

question 22

Multiple Choice

suppose Sam, a typical citizen, has the utility function U(m, d, h) = m + 13d² - d² - 6h, 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 = 8 and D₂ = 4.
• B)D₁ = 6 and D₂ = 3.
• C)D₁ = D₂ = 6.
• D)D₁ = 9 and D₂ = 0.
• E)D₁ = 6 and D₂ = 1.

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Definitions:

Joseph Stalin

A Soviet political leader who served as General Secretary of the Communist Party of the Soviet Union from 1922 until his death in 1953, overseeing the country through World War II and the start of the Cold War.

Soviet Sphere

refers to the geopolitical influence zone dominated by the Soviet Union during the Cold War, including countries in Eastern Europe, Asia, and elsewhere that were allies or under the control of the USSR.

Eastern Europe

The eastern part of the European continent, which comprises countries that were historically influenced by the Byzantine or Ottoman Empires, and/or were part of the Soviet bloc.

Bretton Woods Conference

A meeting held in 1944 where allied nations agreed on a series of financial and monetary arrangements, leading to the establishment of the International Monetary Fund and the World Bank.