Question
Answer TRUE or FALSE, along with an explanation. -A decision-maker with more options must be better off. - If the utility to Louis from eating
Answer TRUE or FALSE, along with an explanation.
-A decision-maker with more options must be better off.
- If the utility to Louis from eating a banana is 5 and the utility to Maurice from
eating a banana is 7, then Maurice likes bananas more than Louis does.
- If the price of some good increases, then the aggregate demand for this good (i.e., the sum of all consumers' demands for this good) must fall.
- A risk-averse decision-maker will purchase full insurance at any price.
- Suppose that an expected-utility maximising job-seeker prefers working for Mi- crosoft to working for Google. Then she must prefer working for Microsoft to a coin flip over both jobs.
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