Choose ONE question.

The assignment contributes 75% of the overall grade of the module and requires a minimum pass mark of 40%.
Word Limit for the whole document is 2000 words, excluding references, equations and diagrams.

Use double spaced text, Arial font size 12, minimum 2 cm margins (as pre-set in the submission template). Where hand written content is used, please present neatly and double space your working where possible.

Please use Harvard referencing where appropriate:
https://librarydevelopment.group.shef.ac.uk/referencing/harvard.html

All answers must be typed. Any images must be scanned (e.g. using a mobile phone) and inserted into the text. Equations and diagrams may be inserted using an equation editor or handwritten and inserted as images.
Coursework must be submitted online through Blackboard using Turnitin and by no later than 12.00 noon on the deadline. Coursework submitted after the 12.00 noon deadline will have a late penalty applied. Details about the late penalty policy can be found in the Student Handbook.

You must attach a submission template coversheet to the front of your work when submitting it to Turnitin to avoid a 5% penalty. Full details of this policy can be found in the Student Handbook.
Please ensure that you have read the assessment guidelines provided in the Student Handbook, including the guidance about submission requirements, extension requests and extenuating circumstances and the use of unfair means.

Note: This assessment will require you to use a range of transferable skills including:
Academic writing; Translating knowledge; Research skills; Critical thinking; Synthesis of existing empirical literature; and Effective essay structure and written communication skills.

Question 1
“Expected utility theory fails as a descriptive model of decision making under uncertainty”. With reference to competing theories and the empirical evidence, critically evaluate this statement.

Question 2
“Time inconsistency is a significant concern in dynamic economic environments”. With reference to competing microeconomic theories and the empirical evidence, critically evaluate this statement and discuss any interventions which may help correct this behaviour.