The difference between the utility of expected income and expected utility from income is
A) zero because income generates utility.
B) positive because if utility from income is uncertain, it is worth less.
C) negative because if income is uncertain, it is worth less.
D) that expected utility from income is calculated by summing the utilities of possible incomes, weighted by their probability of occurring, and the utility of expected income is calculated by summing the possible incomes, weighted by their probability of occurring, and finding the utility of that figure.
E) that the utility of expected income is calculated by summing the utilities of possible incomes, weighted by their probability of occurring, and the expected utility of income is calculated by summing the possible incomes, weighted by their probability of occurring, and finding the utility of that figure.
D
You might also like to view...
One barrier to entry into a monopoly market is:
A. the ownership of a key resource or input. B. too many competitors already in the market. C. high input costs. D. few buyers.
How does age affect the amount of income people earn?
If a monopolist's marginal costs increase by $1 for all levels of output, then the monopoly price will
a. rise by $1. b. rise by more than $1. c. rise by less than $1. d. not change, but profits will decrease.
According to both the equation of exchange and the quantity theory of money
A. an increase in the money supply will decrease real Gross Domestic Product (GDP). B. an increase in the money supply will increase real Gross Domestic Product (GDP). C. a decrease in the money supply will decrease the velocity of money. D. a decrease in the money supply will decrease the price level.