Refer to Scenario 5.6. The expected utility of income from ...

[itsmyluck]

Refer to Scenario 5.6. The expected utility of income from research is
 
  A) u(275,000 ).
  B) u(95,000 ).
  C) u(500,000 ) + u(50,000 )/2.
  D) .1 u(500,000 ) + .9 u(50,000 ).
  E) dependent on which outcome actually occurs.

Question 2

The principle of revealed preference would say that if Xavier chooses market basket A over market basket B then:
 
  A) if A is more expensive than B, then Xavier must prefer A over B.
  B) if A is more expensive than B, then Xavier must prefer B over A.
  C) if A is less expensive than B, then Xavier must prefer A over B.
  D) if A is less expensive than B, then Xavier must prefer B over A.

[yotaSR5]

Answer to Question 1

D

Answer to Question 2

A

[itsmyluck]

TYSM

[Dominic]

Excellent