NS FOR REVIEW AND PRACTICE 1. Is a person's money income a good approximation for their total utility? Explain. 2. Gwendolyn owns a house, car, and portfolio of stocks with market values of $450,000, $25,000, and $100,000, respectively. She also has $2,000 in a checking account. She still owes $150,000 on her home mortgage and $5,000 on a car loan. What are Gwendolyn's assets, liabilities, and net worth? How much money does she have? Gwendolyn works as an art appraiser, earning $75,000 a year. Assume her consumption is $70,000 and the remaining $5,000 is invested in stocks. What are Gwendolyn's assets, liabili ties, and net worth? Assume instead of buying stocks, Gwendolyn uses the $5,000 to pay off her car loan. What are Gwendolyn's assets, liabilities, and net worth? 3. Society consists of fifteen single individuals. Their incomes are as follows: $100,000 $75,000 $25,000 $35,000 $150,000 $80,000 $15,000 $45,000 $85,000 $90,000 $110,000 $135,000 $95,000 $70,000 $60,000 Use the data to construct a table showing the percentage of total income received by each quintile. Then compute the cumulative distribution and use it to construct a Lorenz curve and Gini coeffi- cient using the method described in the Appendix A to this chapter. to the