10 Questions
What is a necessary condition for a person's behaviour to be considered rational?
They have complete and transitive preferences over the outcomes of possible actions
What does it mean to have complete preferences?
To be able to compare and rank all possible outcomes in order of preference
What is the implication of transitive preferences?
A person can order their choices from best to worst, allowing for ties
What is the relationship between instrumental rationality and expressive rationality in the context of motivations?
Both types of rationality can be modeled using economic techniques if they can be described as utility maximising behaviour
What is the purpose of a binary preference relation ⪰ in the context of rationality?
To determine whether a person's preferences are complete and transitive
What is the implication of a complete preference relation ⪰?
For any two outcomes a and b, either a ⪰ b or b ⪰ a (or both in case of weak preference)
What is the definition of transitive preferences in terms of the binary preference relation ⪰?
If a ⪰ b and b ⪰ c, then a ⪰ c
What is the relationship between a person's preferences and their utility maximising behaviour?
All types of motivations can be modeled as utility maximising behaviour if they can be described in terms of preferences
What is the implication of a person's preferences being transitive?
They can consistently rank their outcomes from best to worst, allowing for ties
What is the necessary condition for a person's behaviour to be modeled using economic techniques?
Their preferences can be described as utility maximising behaviour
Test your understanding of preference relations, utility functions, and their representation theorems in microeconomics. Learn how to define and work with these concepts to model rational decision-making behavior.
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