The continuity assumption holds that consumers substitute:
A) the present value for a stated risky prospect accurately.
B) their preferences under certainty for those under risk accurately.
C) the expected value for a stated risky prospect accurately.
D) compound probabilities for simple probabilities accurately.
Correct Answer:
Verified
Q16: Stephanie's utility function is given by U
Q17: Risk- averse individuals:
A)never buy stocks.
B)buy stocks as
Q18: An individual is more likely to reject
Q19: Maya's bracelet is worth $100. There is
Q20: Which one of the sets below is
Q22: The continuity assumption states that:
A)given any prospect,
Q23: When individuals are risk- averse:
A)they stay away
Q24: A certainty equivalent income:
A)means that there is
Q25: Which of the following represents the utility
Q26: Most economic decisions are made under conditions
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