Multiple Choice
The continuity assumption holds that consumers facing risky decisions:
A) can choose only if the values of outcomes are continuous.
B) can be indifferent between a risky and a certain prospect.
C) require only the assumptions required under certainty.
D) prefer them to certain prospects.
Correct Answer:
Verified
Correct Answer:
Verified
Q70: Expected values are found by:<br>A)public opinion surveys.<br>B)introspection
Q71: A compound prospect:<br>A)is the predicted interest rate
Q72: A person that is a risk lover
Q73: Maria is planning a trip to Hawaii.
Q74: A certainty equivalent income:<br>A)means that there is
Q76: Suppose a person must accept one of
Q77: Which of the following individuals is likely
Q78: The maximum that a risk- averse individual
Q79: A compound prospect can be defined as
Q80: Al, a risk- averse expected- utility maximizer