Figure 19-1.The Figure Shows a Utility Function

question 169

Multiple Choice

Figure 19-1.The figure shows a utility function.
-Refer to Figure 19-1.The properties exhibited by this utility function help to explain various things we observe in the economy,including

• A) the risk-return tradeoff.
• B) insurance.
• C) diversification.
• D) All of the above are correct.

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Definitions:

Major Premise

The first statement in a syllogism, containing the universal principle or general assertion.

Categorical Syllogism

A form of argument consisting of three categorical propositions that together yield a conclusion.

Categorical Propositions

Statements that assert or deny that all, some, or none of a particular class of objects belong to another class of objects.

Universal

Describes something that applies to all instances or a concept that is globally accepted or recognized.