1. Briefly identify and critique the assumptions of Rational Choice Theory (5 marks)
2. Clearly contrast Cardinal utility and ordinal utility (3 Marks)
3. Explain the principle of Diminishing Marginal Utility (2 Marks)
4. Given a consumer has a money budget M = 90 and utility function(, ) = ^1/41/2 If she consumes two goods x and y with prices given by= 2 and= 4 state the budget constraint equation (5 Marks)

Determine the utility maximizing quantities X and Y for the consumer in (d) above (10 marks)