Figure 19-2

question 331

Multiple Choice

Figure 19-2.The figure shows a utility function for Mary Ann.
-Refer to Figure 19-2.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:

Spanish

Relates to Spain, its people, culture, or language, which is a Romance language originating in the Iberian Peninsula of Europe.

Pope

The bishop of Rome and the spiritual leader of the worldwide Catholic Church, regarded as the successor to Saint Peter, one of the apostles of Jesus.

Charles II

King of England, Scotland, and Ireland from 1660 to 1685, known for his role in the Restoration of the monarchy after the Interregnum period.

English Civil War

A series of armed conflicts and political machinations between Parliamentarians ("Roundheads") and Royalists ("Cavaliers") in England from 1642 to 1651.