Test Questions without Answers
Chapter 3. The Subject of Economics II. Homo Economicus
Chapter 3– Question 1
You have a choice of driving or flying from Munich to Paris for a business trip. If you fly, you can work two hours more in Paris, during which you will earn an additional $200. Flying also involves non-monetary benefits of $20. You are a rational utility maximiser and will therefore choose driving if the price differential (flying minus driving) is above
- $200
- $110
- $180
- $220
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Chapter 3– Question 2
You buy a new shirt. Is that your independent decision or is it an interactive decision? If interactive, by which other actors is your decision influenced?
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Chapter 3 –Question 3
Distinguish situations of risk and uncertainty and give an example of each.
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Chapter 3– Question 4
Can you describe a situation in your life in which knowing probabilities is important?
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Chapter 3 – Question 5
Explain what non-hedonistic, revealed-preferences utilitarianism is.
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