Figure 19-4

question 86

Multiple Choice

Figure 19-4.The figure shows a utility function for Dexter.
-Refer to Figure 19-4.Suppose the vertical distance between the points (0,A) and (0,B) is 12.If his wealth increased from $1,300 to $1,800,then

• A) Dexter's subjective measure of his well-being would increase by less than 12 units.
• B) Dexter's subjective measure of his well-being would increase by more than 12 units.
• C) Dexter would change from being a risk-averse person into a person who is not risk averse.
• D) Dexter would forgo the insurance he bought when his wealth was $1,300.

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Definitions:

Collective Bargaining

Negotiation of employment conditions between employers and a group of employees who are usually represented by a union.

Conditions of Employment

The terms, policies, and requirements that define the working relationship between an employer and employee.

National Labor Relations Board

A federal agency in the United States responsible for enforcing US labor law in relation to collective bargaining and unfair labor practices.

Jurisdiction

The power of a court to hear cases and resolve disputes.