Jessica Must Choose Option a or Option B

question 193

Multiple Choice

Jessica must choose option A or option B. Option A gives her $10,000 for sure. Option B gives her $5,000 if a fair coin toss shows heads and $15,000 if it shows tails. If Jessica is risk averse her utility of wealth curve becomes

• A) flatter as her wealth increases and she will choose option A.
• B) flatter as her wealth increases and she will choose option B.
• C) steeper as her wealth increases and she will choose option A.
• D) steeper as her wealth increases and she will choose option B.

---

Definitions:

Benjamin Rush

A Founding Father of the United States and a physician who is considered to be the "Father of American Psychiatry" for his early contributions to the field.

Moral Treatment Movement

The Moral Treatment Movement was a 19th-century approach to mental illness emphasizing humane treatment, moral discipline, and the therapeutic benefits of nature and meaningful work.

Philippe Pinel

A French physician known for his humane treatment of psychiatric patients in the late 18th and early 19th centuries, often regarded as a founder of modern psychiatry.

Moral Treatment

An approach to mental health care in the 18th and 19th centuries that emphasized humane and respectful techniques.