Consider the Following Scenario When Answering the Following Questions

question 159

Multiple Choice

Consider the following scenario when answering the following questions:
Ivett and Desiree are considering playing a game called Matching Fifties.In this game,Ivett and Desiree will each place a $50 bill on the table.Both players will then toss a fair coin.If both Ivett and Desiree toss heads or if they both toss tails,Ivett wins the $100 on the table.If one woman tosses heads and the other tosses tails,Desiree wins the $100 on the table.
-Ivett decides that she is not willing to play this game because a loss of $50 to Desiree will cause her to lose more utility than she should gain if she won $50 from Desiree.Ivett would be considered ________,but if she was ________,she would be willing to play the game.

• A) risk loving; risk averse
• B) risk neutral; risk averse
• C) risk averse; risk neutral
• D) risk loving; risk neutral
• E) risk neutral; risk loving

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Definitions:

Electrical Activity

Movements of electrons or ions that reflect the function of cells or systems, typically measured in the nervous system and heart.

Surgical Anesthesia

A state of controlled, temporary loss of sensation or awareness that is induced for medical purposes, typically to enable surgery without pain.

Unconscious Processes

Cognitive activities that happen outside of conscious recognition, affecting how we perceive, think, and act.

Electrooculograph

An instrument used to measure the resting potential of the retina through electrodes placed around the eyes, commonly used in eye movement research.