The Difference Between the Utility of Expected Income and Expected

question 119

Multiple Choice

The difference between the utility of expected income and expected utility from income is:

• A) zero because income generates utility.
• B) positive because if utility from income is uncertain, it is worth less.
• C) negative because if income is uncertain, it is worth less.
• D) that expected utility from income is calculated by summing the utilities of possible incomes, weighted by their probability of occurring, and the utility of expected income is calculated by summing the possible incomes, weighted by their probability of occurring, and finding the utility of that figure.
• E) that the utility of expected income is calculated by summing the utilities of possible incomes, weighted by their probability of occurring, and the expected utility of income is calculated by summing the possible incomes, weighted by their probability of occurring, and finding the utility of that figure.

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Definitions:

Effective Freedom

The actual ability and means to exercise one's rights and freedoms, as opposed to merely having them guaranteed by law.

Progressive Reforms

A series of political, economic, and social reforms in the late 19th and early 20th centuries aimed at addressing issues of inequality, corruption, and inefficiency.

Sexual Freedom

The liberation and empowerment in expressing one's sexual orientation, choices, and practices freely, without societal, cultural, or legal restrictions.

Progressive Era

A period of widespread social activism and political reform in the United States from the 1890s to the 1920s, aimed at eliminating problems caused by industrialization, urbanization, immigration, and corruption.