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Mr Angst Has Two Children, Dick and Jane

Question 24

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Mr. Angst has two children, Dick and Jane. Dick is a slow learner and Jane is very bright. If Mr. Angst spends $X per month on Dicks education, Dick will score a total of Mr. Angst has two children, Dick and Jane. Dick is a slow learner and Jane is very bright. If Mr. Angst spends $X per month on Dicks education, Dick will score a total of   points on his SAT tests. If Mr. Angst spends $Y per month on Janes education, she will score a total of 2Y on her SAT tests. Mr. Angst has a utility function U(D, J)  = min{D, J}, where D is Dicks SAT score and J is Janes SAT score. To maximize his utility, he will spend A)  equal amounts of money on the two children. B)  4 times as much money on Dick's education as on Jane's. C)  4 times as much money on Jane's education as on Dick's. D)  between 1 and 2 times as much money on Dick's education as on Jane's. E)  between 1 and 2 times as much money on Jane's education as on Dick's. points on his SAT tests. If Mr. Angst spends $Y per month on Janes education, she will score a total of 2Y on her SAT tests. Mr. Angst has a utility function U(D, J) = min{D, J}, where D is Dicks SAT score and J is Janes SAT score. To maximize his utility, he will spend


A) equal amounts of money on the two children.
B) 4 times as much money on Dick's education as on Jane's.
C) 4 times as much money on Jane's education as on Dick's.
D) between 1 and 2 times as much money on Dick's education as on Jane's.
E) between 1 and 2 times as much money on Jane's education as on Dick's.

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