Which of the Following Is a Key Assumption of the Utility

question 9

Multiple Choice

Which of the following is a key assumption of the utility function?

• A) Gambles of the form (x, p, y) should be equal to gambles of the form (y, p, x).
• B) Gambles are not interchangeable even if the prizes are similar.
• C) A person's attitude toward a lottery is not solely dependent on the ultimate prizes.
• D) Every object considered for gambling is comparable.

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Definitions:

Productive Work

Activities or tasks that contribute to the creation of goods or services and have economic value.

Group Attractiveness

The overall appeal or desirability of a group to its members, influencing cohesion and retention.

Groupthink

A psychological phenomenon that occurs within a group of people, in which the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Cohesiveness

The quality of forming a united whole, often referring to the degree to which members of a group or organization stick together.