Choose the following answers

1). Assume that in the pre-election polls of the 2020 Trump-Biden election, Biden had a lead, but when a third party candidate was introduced, Trump had a lead. This scenario violates

a. procedure invariance.

b. convexity.

c. the IIA principle.

d. completeness.

2) (Choose all that apply) Rational people cannot have preferences that are

	a.	incomplete
	b.	intransitive
	c.	non-convex
	d.	not satisfying non-satiation
	e.	not continuous

3) Preferring averages to extremes goes hand-in-hand with

	a.	the IIA principle.
	b.	procedure invariance.
	c.	continuity.
	d.	completeness.
	e.	transitivity.
	f.	convexity.

4) Convexity translates to

	a.	no "jumps".
	b.	a guarantee that the optimal choice will be on the budget line.
	c.	similar preferences to similar bundles.
	d.	love for variety.

5) Continuity implies that

	a.	the more burgers and fries the better.
	b.	one's satisfaction levels are similar for 25 oz and 26 oz of chocolate.
	c.	one prefers a moderate amount of peanut butter with jelly rather than only peanut butter or only jelly.
	d.	one has a very specific taste for coffee and any deviation makes them worse off.

6) If preferences for existing products shift when introducing a decoy, ______________ is violated.

	a.	the principle of IIA
	b.	convexity
	c.	completeness
	d.	non-satioation

7) Non-satiation translates to

	a.	no "jumps".
	b.	love for variety.
	c.	a guarantee that the optimal choice will be on the budget line.
	d.	similar preferences to similar bundles.

8) You are working at the popcorn station of a cinema complex. Currently you offer popcorn at $5 and popcorn with a drink at $8. Your manager wants to increase the sales of the $8 combo, what is your suggestion based on the decoy effect?

	a.	Let's offer a drink at $5.
	b.	Let's add different popcorn sizes in our menu.
	c.	Let's offer a drink at $8.
	d.	Let's offer another combo with nachos and a drink at $8.

9) Your friend is dating two people; the first one is smarter but less funny, the second is less smart but more funny. What could convince your friend to date the first person?

	a.	Meeting a third person that is less smart and less funny than the first person but funnier than the second one.
	b.	Meeting a third person that is less smart and less funny than the second person but funnier than the first one.
	c.	Meeting a third person that is less smart and less funny than the first person but smarter than the second one.
	d.	Meeting a third person that is less smart and less funny than the second person but smarter than the first one.

10) Your friend is dating two people; the first one is smarter but less funny, the second is less smart but more funny. What could convince your friend to date the second person?

	a.	Meeting a third person that is less smart and less funny than the second person but funnier than the first one.
	b.	Meeting a third person that is less smart and less funny than the first person but funnier than the second one.
	c.	Meeting a third person that is less smart and less funny than the first person but smarter than the second one.
	d.	Meeting a third person that is less smart and less funny than the second person but smarter than the first one.

11) You are teaching a Statistics class in which students need to use a statistical software for their assignments.

Softwares are evaluated in 2 dimenions:

1. how easy they are to learn - generally, the easier the better
   • Your measure of difficulty level ranges from 0 (not difficult at all) to 10 (extremely hard
2. how many applications they have - some are used in many fields while others are only used in very niche areas
   • Ranked from worst to best: "almost no applications", "limited applications", "moderate applications", "extensive applications"

There are 2 common options:

Option A: 2/10 difficulty level and limited applications

Option B: 8/10 difficulty level and extensive applications

You want students to invest in learning the harder option (option B) because of how useful you think it is going to be for their future (even though it has a steep learning curve).

Which of the following options would you present to students (along with A and B) to make option B more attractive?

	a.	1/10 difficulty level and moderate applications.
	b.	9/10 difficulty level and almost no applications.
	c.	9/10 difficulty level and moderate applications.
	d.	1/10 difficulty level and almost no applications.

12) You are teaching a Statistics class in which students need to use a statistical software for their assignments.

Softwares are evaluated in 2 dimenions:

1. how easy they are to learn - generally, the easier the better
   • Your measure of difficulty level ranges from 0 (not difficult at all) to 10 (extremely hard)
2. how many applications they have - some are used in many fields while others are only used in very niche areas
   • Ranked from worst to best: "almost no applications", "limited applications", "moderate applications", "extensive applications"

There are 2 common options:

Option A: 2/10 difficulty level and limited applications

Option B: 8/10 difficulty level and extensive applications

The TA wants students to invest in learning software A so that they have less work answering their questions.

Which of the following options would the TA present to them (along with A and B) to make option A more attractive?

	a.	9/10 difficulty level and moderate applications.
	b.	3/10 difficulty level and almost no applications.
	c.	3/10 difficulty level and moderate applications.
	d.	9/10 difficulty level and almost no applications.

13) If you prefer Biden to Trump and Trump to Hilary but, you also prefer Hilary to Biden, you are violating

	a.	continuity.
	b.	completeness.
	c.	the IIA principle.
	d.	convexity.
	e.	transitivity.
	f.	procedure invarianc