Is utility of wealth on the Exam?

[Black Mage]

Hello,

I never saw this in the old exams, I didn't see it mentioned in arch-3 either, but the questions in Actex 2002 and BPP sometimes refer to "utility of wealth" and the indifference principle. Should we know this? Is this on the syllabus?

Please say no.

Dunno whether you need to know it for exam 3, but it sounds like the indifference curves and its equivalent "theory of cardinal utility" from Exam 2, Micro. (Chapter 3 of Landsburg).

[Black Mage]

It's actually E(e^aw)=1

It's like finding E(L)=0, but since it's in the exponent it's E(e^aw)=1, where a is a defined constant.

I ain't putting any more time into it, theres just so much on this exam to go over before 5/13!

[E]

In my opinion, utility of wealth is one of those topics that would only be important for someone trying to get 40/40 right on the exam.

[Brutè]

Originally Posted by E

In my opinion, utility of wealth is one of those topics that would only be important for someone trying to get 40/40 right on the exam.

Even then its importance is suspect.