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8006 Practice Questions

8006 Practice Questions

Question# 1

A utility function expresses:

Question# 2

If x represents wealth, and u(x) its utility, then a logarithmic utility function can be represented by:

Question# 3

Which of the following is one of the basic axioms on which the principle of maximum expected utility is based:

Question# 4

What kind of a risk attitude does a utility function with downward sloping curvature indicate?

Question# 5

What kind of a risk attitude does a utility function with an upward sloping curvature indicate?

Note:

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8006 Practice Questions

8006 Practice Questions

Question# 1

A utility function expresses:

Question# 2

If x represents wealth, and u(x) its utility, then a logarithmic utility function can be represented by:

Question# 3

Which of the following is one of the basic axioms on which the principle of maximum expected utility is based:

Question# 4

What kind of a risk attitude does a utility function with downward sloping curvature indicate?

Question# 5

What kind of a risk attitude does a utility function with an upward sloping curvature indicate?

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