-The Above Figure Shows Bob's Utility Function

question 4

Multiple Choice

-The above figure shows Bob's utility function.He currently has $100 of wealth,but there is a 50% chance that it could all be stolen.Bob is risk averse because

• A) his utility function is convex.
• B) he has negative marginal utility of wealth.
• C) he is willing to pay a premium to avoid a risky situation.
• D) All of the above.

---

Definitions:

Semantic Memories

Memories of general knowledge and facts about the world, independent of personal experience.

Working Memories

A mental system with limited space designated for momentarily keeping data accessible for manipulation.

Implicit Memories

Memories that influence thoughts and behaviors without entering conscious awareness, such as skills and tasks learned through experience.

Episodic Memory

A category of enduring memory tasked with retrieving distinct occurrences, scenarios, and impressions, along with the settings and emotional responses related to them.