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In module 6 we discussed incentive systems.  __________________ refers to the fact that it is very difficult to predict every response to an incentive system that is put in place.  

Utility functions are normally a function of:

According to “Risk and the Entrepreneurial Spirit”, important characteristics of a model include:

In module 3 we discussed regret tables.  Regret tables are used to measure:

Which of the following is NOT a government role in the public sector of the US economy?

Which decision rule assumes that all events are equally probable?

In module 4 we discussed individual decision making.  The claim that decisions are made to maximize expected utility rather than expected monetary value is the major component of which of the following?

Which of the following are tools available to assist in risk identification: I. inspections II. document analysis III. interviews

Which of the following is true of utility functions used to model risk aversion: I.  utility is always increasing in wealth II.  utility is increasing at a decreasing rate III.  utility becomes negative at significantly large amounts

In module 6 we discussed biases.  Which of the following facts is NOT true regarding bias: