Q1. Utility function is ln(c1)+ln(c2). This utility function is better than simply c1+c2 because the former captures a preference for variety. A. True B. False

Q2. When discount factor beta=0, the consumer is extremely patient. A. True B. False

Q3. When discount factor beta=0, consumer prefers (3,1) to (2,2). A. True B. False

Q4. When discount factor beta=1, consumer prefers (3,1) to (2,2). A. True B. False

Q5. Derivative of ln(ax+b) is A. a/(ax+b) B. b/(ax+b) C. (ax+b)/a D. (ax+b)/b