Economists Have Developed Models of Risk Aversion Using the Concept

question 42

Multiple Choice

Economists have developed models of risk aversion using the concept of utility, which is a person's subjective measure of

• A) distance
• B) height.
• C) well-being or satisfaction.
• D) money.

---

Definitions:

U-Shaped Valley

A valley with a distinct U-shaped cross-section, typically formed by glacial erosion.

Tarn

A small mountain lake or pool, formed in a cirque excavated by a glacier.

Shoreline

The boundary line where land meets a body of water, such as a sea, lake, or river, constantly reshaped by the forces of nature.

Bedrock

The solid layer of rock beneath the soil and subsoil, acting as the foundation for the Earth's surface.