Shaqueenas utility function is given by u i12 where i, Ask an Expert

Economics

Q1) Shaqueena's utility function is given by U= I^1/2, where I signifies annual income in thousands of dollars.

a. Is Shaqueena risk loving, risk neutral or risk averse?

b. Assume Shaqueena is presently earning income of $23,000 (I =23) and can earn that income next year with certainty. She is offered a chance to take new job that offers 0.5 probability of earning $25000 and 0.5 probability of earning $16000. Must she take new job?

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M923040

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question propose two separate behaviors other than

Question: Propose two separate behaviors other than government purchases that could offset the effects of the military spending reduction on total planned expenditure. Be specific in your examples. The response must be t ...

Question describe your recommendations concerning the

Question: Describe your recommendations concerning the issues presented in "Carnival". The issues of the cruise ship Carnival that is facing today, what would your recommendations be? The response must be typed, single s ...

Question in an attempt to help the farm sector congress has

Question: In an attempt to help the farm sector, Congress has several times passed legislation initiating and then extending the requirement that ethanol be blended with gasoline sold at the pump in many states. Because ...

Question 1 reflect upon the it strategies that are used to

Question: 1. Reflect upon the IT strategies that are used to encourage economic development. Select two strategies and discuss how economic factors affect the strategies that a government may use to facilitate economic d ...

Question if the removal of trade barriers is so beneficial

Question: If the removal of trade barriers is so beneficial to international economic growth, why would a nation continue to restrict trade on some imported or exported products? The response must be typed, single spaced ...

Question explain why a perfectly competitive firm generally

Question: Explain why a perfectly competitive firm generally does not maximize its profit by producing the output at which average cost is minimized. The response must be typed, single spaced, must be in times new roman ...

Question from 1947 to 1973 the us economy went through five

Question: From 1947 to 1973, the US economy went through five recessions, while Europe and Japan did not have any. Since 1982, however, cyclical downturns in Europe and Japan have been at least as frequent as in the US. ...

Question 1 discuss the significance and the impact that the

Question: 1) Discuss the significance and the impact that the environment has on human health. Provide examples and discuss how they relate to the practice of public health today. Your response should be at least 210 wor ...

Question an electric generator was purchased for 15000 use

Question: An electric generator was purchased for $15,000. Use the sum-of-years digits (SOYD) depreciation accounting method with a $2,000 salvage value and a 10-year depreciation life. Develop a depreciation schedule fo ...

Question in some ways monitoring is easier in a partnership

Question: In some ways monitoring is easier in a partnership than a corporation, where shareholders monitor directors. In what ways is monitoring easier? In what ways is it not? The response must be typed, single spaced, ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert