Mary makes a New Year's resolution to lose weight.On January 3rd,Mary decides to go to Ben & Jerry's for ice cream instead of going to the gym.Using the concept of revealed preference,we can conclude that Mary:
A) is not a rational individual.
B) actually gains more utility from ice cream than working out.
C) is a liar.
D) All of these are true.
Correct Answer:
Verified
Q1: Utility is:
A)useful in describing a person's preferences
Q2: One baseline assumption that economists make is:
A)people
Q7: Revealed preference is:
A) the idea that people's
Q7: A utility function is:
A)a formula for calculating
Q8: Utility is:
A)maximized by rational individuals.
B)revealed by observing
Q9: Bart is seen standing in front of
Q9: After browsing his cabinets to see what
Q10: Utility is:
A)difficult to measure because it is
Q11: When economists observe someone make a choice,they
Q19: Billy is deciding whether to watch TV
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