A Decision Maker Has a Utility Function U = 10I

question 31

Multiple Choice

A decision maker has a utility function U = 10I. This decision maker is:

• A)risk-averse.
• B)risk-neutral.
• C)risk-loving.
• D)risk-gaining.

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Definitions:

Formal Organizations

Structured groups established for a specific purpose, characterized by a system of rules and hierarchies.

Authoritarian Leadership

Demands strict compliance from subordinates. Authoritarian leaders are most effective in a crisis such as a war or the emergency room of a hospital.

Social Groups

are collections of individuals who interact with each other based on shared interests, beliefs, or characteristics, forming a sense of unity and identity.

Groupthink

A phenomenon where a group's desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.