Answer the Question on the Basis of the Following Sequence

question 116

Multiple Choice

Answer the question on the basis of the following sequence of events involving fiscal policy:
(1) The composite index of leading indicators turns downward for three consecutive months,suggesting the possibility of a recession.
(2) Economists reach agreement that the economy is moving into a recession.
(3) A tax cut is proposed in Congress.
(4) The tax cut is passed by Congress and signed by the president.
(5) Consumption spending begins to rise,aggregate demand increases,and the economy begins to recover. Refer to the information.The administrative lag of fiscal policy is reflected in events:

• A) 1 and 2.
• B) 2 and 3.
• C) 3 and 4.
• D) 4 and 5.

Interpret the effects of wealth on risk-taking behaviors and preferences.

Differentiate between different utility functions and their implications for risk preferences.

Explain the concept of certainty equivalent and its relation to risk attitudes.

Understand the concept of expected utility and how it guides decision-making under risk.

---

Definitions:

Intensively

With concentrated and extensive effort or strength; deeply engaged or committed to a task or activity.

Learned Helplessness

A psychological condition in which an individual learns to believe they are powerless to change their situation despite having the ability to do so, often arising from repeated failures.

Experimental Group

In experimental research, the group of subjects that receives the experimental treatment or intervention, used to test hypotheses against a control group.

Control Opportunities

Refers to situations or mechanisms through which an individual can influence the outcomes or environment around them.