Refer to Figure F

question 52

Multiple Choice

Refer to Figure f.A benefit function is plotted in Figure f.The distance C represents the:

• A) risk premium of the consumption bundle.
• B) expected utility of the consumption bundle.
• C) certainty equivalent of the consumption bundle.
• D) expected consumption.

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Definitions:

Specific Gravity

The ratio of the density of a substance to the density of a reference substance, typically water, used to identify materials or test fluid conditions.

Tetrahedron

A polyhedron with four faces, typically each an equilateral triangle, making up one of the simplest geometrical shapes in three dimensions.

Octahedron

A polyhedron with eight faces.

Dodecahedron

A polyhedron with twelve flat faces, each face being a pentagon.