The Friedman-Savage Utility Function Can Explain Why

question 62

Multiple Choice

The Friedman-Savage utility function can explain why

• A) people buy automobile insurance.
• B) somebody becomes addicted to gambling.
• C) people become more risk averse as their wealth increases.
• D) people place small bets to have a chance at winning a large amount.

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Definitions:

Self-Discipline

The ability to control one's feelings and overcome one's weaknesses; the ability to pursue what one thinks is right despite temptations to abandon it.

Chaitya Halls

Rock-cut temple halls found in Indian Buddhism, containing a stupa and often characterized by an apsidal end.

Ajanta

An ancient complex of Buddhist cave temples in Maharashtra, India, renowned for its murals and sculptures dating from the 2nd century BCE to about 480 or 650 CE.

Wall Painting

An artwork executed directly on a wall, such as a fresco or mural, often displaying a wide array of subjects and serving various cultural, decorative, or social functions.