Matt's Utility Function $$\begin{array} { c c } \text { Wealth } & \text { Utilty } \\\$ 50,000 & 7000 \\51,000 & 7250 \\52,000 & 7499 \\53,000 & 7746\end{array}$$

question 396

Multiple Choice

Matt's Utility Function $$\begin{array} { c c } \text { Wealth } & \text { Utilty } \\\$ 50,000 & 7000 \\51,000 & 7250 \\52,000 & 7499 \\53,000 & 7746\end{array}$$ If Matt's current wealth is $51,000, then

• A)his gain in utility from gaining $1,000 is greater than his loss in utility from losing $1,000. Matt is risk averse.
• B)his gain in utility from gaining $1,000 is greater than his loss in utility from losing $1,000. Matt is not risk averse.
• C)his gain in utility from gaining $1,000 is less than his loss in utility from losing $1,000. Matt is risk averse.
• D)his gain in utility from gaining $1,000 is less than his loss in utility from losing $1,000. Matt is not risk averse.

---

Definitions:

Evolutionary Psychology

The school of psychology that studies how human behaviors required for survival have adapted in the face of environmental pressures over the long course of evolution.

Potential Mate

An individual who is considered as a possible partner for a romantic or sexual relationship, based on certain desirable attributes or compatibility factors.

Gender Stereotype

Preconceived notions or generalizations about the attributes, characteristics, and roles of males and females in a society.

Sexual Orientation

The direction of one’s sexual interest—toward members of the opposite sex (heterosexuality), toward one’s own sex (homosexuality), or toward both sexes (bisexuality).