Ture or False & explain why 1. For a risk lover, the certainty equivalent of a gamble will equal the expected value of 2. Hyperbolic discounting implies patience over short time horizons, and growing 3. In the dictator game, in practice the second player often rejects offers made to them 4. Reverse auctions involve sellers making price offers for the sale of a good, with the the gamble impatience after that. by the first player lowest offers being accepted by the buyer. These auctions face challenges when the quality of the good is not easily observable 5. A risk-neutral person will have a positive willingness to pay for fair insurance 6. By offering fair insurance, insurance companied should expect to make a profit. 7. In Spence's education model, low-skill workers may decide to pursue higher education For a monopoly, the inverse elasticity rule suggests that the mark-up of price over marginal cost should be smaller when demand is more price elastic. The market line shows market possibilities in terms of expected risk and expected return. Investors are likely to differ in terms of where they wish to locate their investment portfolios along the market line 8. 9