The Key Economic Difference Between Expected Utility and Expected Value

question 54

Multiple Choice

The key economic difference between expected utility and expected value is that

• A)expected value only considers the value of outcomes, whereas expected utility considers the tradeoff between value and risk.
• B)expected utility only considers the value of outcomes, whereas expected value considers the tradeoff between value and risk.
• C)expected utility is the maximum value obtained, whereas expect value is the mean of the values from a set of possible outcomes.
• D)None of the above-the differences are mathematical, not economic.

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Individuals or businesses engaged in the creation or manufacture of goods in limited quantities, often characterized by handcrafted techniques and personalized outputs.

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A society characterized by a hierarchical structure, specialization of labor, and the presence of complex institutions.

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An activity involving mental or physical effort done to achieve a purpose or result, often associated with earning a livelihood in the context of employment.