Jill Is Offered a Choice Between Receiving $50 with Certainty

question 65

Multiple Choice

Jill is offered a choice between receiving $50 with certainty or the proceeds from a gamble.In the gamble a fair coin is tossed and if it comes up heads Jill will receive $100,if the coin comes up tails she will receive nothing.Jill chooses the $50 instead of the gamble.Jill's behavior indicates __________________.

• A) regret avoidance
• B) overconfidence
• C) that she has a diminishing marginal utility of wealth
• D) prospect theory loss aversion

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Definitions:

Cardiovascular System

The network of organs and vessels through which blood flows, carrying oxygen and nutrients to the body's cells, and removing waste products.

Respiratory System

The biological system consisting of specific organs and structures used for gas exchange in animals and plants.

Urinary System

The organ system responsible for creating, storing, and eliminating urine.

Spleen

An organ located under the ribcage and above the stomach in the left upper quadrant of the abdomen that acts as a blood filter in the immune system.