Figure 19-2

question 294

Multiple Choice

Figure 19-2.The figure shows a utility function for Mary Ann.
-Refer to Figure 19-2.From the appearance of the utility function,we know that

• A) Mary Ann is risk averse.
• B) Mary Ann gains less satisfaction when her wealth increases by X dollars than she loses in satisfaction when her wealth decreases by X dollars.
• C) the property of diminishing marginal utility applies to Mary Ann.
• D) All of the above are correct.

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Definitions:

Hypothetical Situation

An imagined scenario used for the purpose of discussion, analysis, or problem-solving.

Full Bench

A full bench refers to the situation when all the judges of a court sit together to hear a case, usually reserved for matters of great significance or complexity.

United States Supreme Court

The highest federal court in the United States, established pursuant to Article III of the U.S. Constitution, with ultimate appellate jurisdiction over all federal and state court cases involving matters of federal law.

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Judges of the highest courts, particularly those within a country's supreme court, responsible for interpreting the law.