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Define revealed preference.
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- T/F Explain Any transitive preference is complete.both attachments are one questionA football coach says that given two players, he always prefers the one who is bigger and faster. Is his preference relation transitive? Is it complete? Prove it. The second coach says that she always prefers the one who is bigger or faster. Is her preference relation transitive? Is it complete? Prove it.
- Give an example of monotonic preferenceSelect the correct option : When the expected utility of offer A is larger than offer B, a rational individual would always prefer offer A to offer B. 1. True 2.FalseTrue or false Indifference curves are upward sloping but may also contain flat areas if preference is monotonic but not strongly monotonic.
- Clarice has a utility function: U(Y) = 1000 - (100/Y), where Y is her income. clarice has just graduated from college and has a career choice for her first job of either working as a teacher and earning $40,000 or trying to become a theatre lighting director and earning $70,000 (if there is growth in the demand for theatre) or $20,000 (if there isn't growth in the demand for theatre). there is a 50% probability of growth. a consulting firm guarantees Clarice that it already knows whether there will be growth in the demand for theatre next year. what is the maximum amount Clarice should be willing to pay for this information?Emma has a utility function U(x1, x2, x3) = log x1 + 0.8 log x2 + 0.72 log x3 over her incomes x1, x2, x3 in the next three years. This is an example of (A) expected value; (B) quasi-hyperbolic utility function; (C) standard discounted utility; (D) none of the above. Emma’s preferences can exhibit which of the following behavioral patterns? (A) preference for flflexibility; (B) context effffects; (C) time inconsistency; (D) intransitivity.Draw a utility function over income u( I) that describes a man who is a risk lover when his income is low but risk averse when his income is high. Can you explain why such a utility function might reasonably describe a person’s preferences?
- What is loss aversion? Explain how the topic is related to behavioral economics? Give at least two examples.True or false According to the Marginal Utility Model, the body politic is healthy when it is active.If total utility increases as wealth increases, the first derivative of the utility function is negative. TRUE OR FALSE
