Figure 14-2

question 186

Multiple Choice

Figure 14-2. The figure shows a utility function for Mary Ann.
-Refer to Figure 14-2. Suppose the vertical distance between the points (0, A) and (0, B) is 5. If her wealth increased from $1,050 to $1,350, then

• A)Mary Ann's subjective measure of her well-being would increase by less than 5 units.
• B)Mary Ann's subjective measure of her well-being would increase by more than 5 units.
• C)Mary Ann would change from being a risk-averse person into a person who is not risk averse.
• D)Mary Ann would change from being a person who is not risk averse into a risk-averse person.

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Definitions:

Steven Jobs

A pioneer of the personal computing industry and co-founder of Apple Inc., known for his significant contributions to technology and innovation.

Leadership

The act of guiding or directing a group towards achieving a common goal, often characterized by the ability to inspire and influence others.

Transformational Leadership

A leadership approach that causes change in individuals and social systems, aiming to develop followers into leaders.

Intellectual Stimulation

The degree to which a leader challenges assumptions, takes risks, and stimulates followers to be creative and innovative.