Author Question: Refer to Scenario 5.6. The expected utility of income from research is A) u(275,000 ). B) ... (Read 44 times)

itsmyluck · **on:** Jul 1, 2018

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.