-Refer to Figure G

question 46

Multiple Choice

-Refer to Figure g.Lily's benefit function (dashed) is more concave than Millie's benefit function (dotted) .Lily

• A) Is more risk averse than Millie
• B) Is less risk averse than Millie
• C) Has a smaller risk premium than Millie
• D) Has a larger certainty equivalent than Millie

---

Definitions:

Processing of Information

The operations and activities involved in the perception, manipulation, and storage of information by the human brain or computer systems.

Desired Future Selves

Refers to the aspirational visions individuals have for who they want to become in the future, including their goals, ambitions, and desired attributes.

Self-esteem

One's overall evaluation or appraisal of one's own worth.

Competence

Refers to having the necessary ability, knowledge, or skill to perform a task successfully.