Pure capitalism does not focus on private ownership of resources
Indicate whether the statement is true or false
false
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Suppose a consumer's utility function is U(F0, F1) = F00.6F10.4, where F0 represents food consumed this year and F1 represents food consumed next year. For that utility function, the marginal utility of food consumed this year is 0.6 × (F1/F0)0.4 and the marginal utility of food consumed next year is 0.4 × (F0/F1)0.6. Which of the following expressions gives the consumer's marginal rate of substitution for food this year with food next year (MRS01)?
A. MRS01 = F1/F0 B. MRS01 = (2/3) × (F0/F1) C. MRS01 = (2/3) × (F1/F0) D. MRS01 = (3/2) × (F1/F0)
Regional Fed banks
A. Insure the deposits in private banks. B. Hold deposits for individuals. C. Clear checks between private banks. D. Participate in open market operations.