Nikolaj makes a New Year's resolution to lose weight. On January 3 ^rd, he decides to go out for ice cream instead of going to the gym. Using the concept of revealed preference, economists would most likely conclude that Nikolaj: A)is not a rational individual. B)gains more utility from ice cream than working out. C)has changed his preferences. D)has no control over the actions he makes.

Question

Quizplus · Accepted Answer

Revealed preference theory suggests that individuals' choices reveal their preferences. By choosing ice cream over the gym, Nikolaj demonstrates he gains more utility from the ice cream, despite his resolution.

Nikolaj Makes a New Year's Resolution to Lose Weight