Ünite Sınavı Soruları

A person who prefers a gamble with the same expected value as a certain income is said to be:

Which of the following best defines the completeness axiom?

If you and your friend play a game where you flip a coin and if it lands on heads your friend will pay you 5₺, but if the coin lands on tails you must pay them 5₺. What is the expected value of this game?

Which of the given statements is true for the differences/similarities between Expected Utility Theory and Prospect Theory?

Which of the following scenarios violates the transitivity axiom?

I. The expected utility theory explains the consumer’s optimal behavior with rationality assumption and a set of axioms.

II. It has been criticized for the limited capacity of human processing power.

III. Another criticism of the model was its assumption that individuals can access information on the subject at a cost.  

Which of the given can be said to be true about the Expected Utility Theory?

I. The Prospect Theory is a behavioral model that shows how people choose under uncertain conditions.

II. The theory introduced two phases to decision-making: editing and evaluating.

III. The theory introduced probabilities to calculate the value of outcomes for decision-makers.

What can be said to be true about The Prospect Theory?

What behavior is revealed by the Ellsberg Paradox?Risk neutrality

 

According to prospect theory, why do people tend to avoid losses more than they seek equivalent gains?

I. Completeness

II. Transitivity

III. Certainty

IV. Independence 

Which of the given are part of the basic axioms of the rational choice theory?

I. The theory of rational choice is an “axiomatic” theory.

II. An axiom is a basic proposition of the theory that is proven by the theory.

III. The basic axioms of the rational choice theory are completeness, transitivity, continuity, monotonicity, independence and convexity.

What can be said to be true about the axioms of the rational behavior model?

What is the “framing effect” in decision-making?

What are individuals who prefer less risky situations or they try to minimize risk called?

The Allais Paradox challenges which core axiom of expected utility theory?

What describes how people choose between different options and how they estimate the perceived likelihood of each of these options?

I. The risk-averse person’s utility function has a positive but increasing slope indicating the diminishing marginal utility of wealth and wealth is measured on the horizontal axis X.

II. The utility function of the risk-seeker individual is convexly indicating an increasing marginal utility of money income or wealth.

III. The risk-neutral individual’s utility function is linear and negatively sloped.

What can be said to be true about the utility functions of risk preferences?

According to expected utility theory, how do rational individuals make decisions under uncertainty?

What is a situation where probabilities cannot be expressed with any mathematical precision?

What is the core issue in the St. Petersburg paradox?