In Utility Analysis, a Utility Curve That Shows a Rapid

question 44

Multiple Choice

In utility analysis, a utility curve that shows a rapid increase in utility for initial amounts of money followed by a gradual leveling off for a larger amount of money is appropriate for a risk ________ decision maker.

• A) -seeking
• B) -averse
• C) -neutral
• D) None of the other choices is correct.

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Definitions:

Erogenous Zones

Erogenous zones are areas of the body that elicit sexual arousal when touched or stimulated.

Sigmund Freud

An Austrian neurologist who founded the discipline of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Superego

A part of the human psyche in psychoanalytic theory that represents internalized ideals and provides standards for judgment.

Id

Within the framework of psychoanalytic theory, it refers to the segment of the mind responsible for generating innate impulses and urging the instant gratification of basic desires.