Svetlana Is Risk Averse

question 27

Multiple Choice

Svetlana is risk averse.Which of the following is correct about Svetlana?

• A)Her marginal utility of wealth increases as her income increases.
• B)She will always accept a bet if the probability of winning a dollar is the same as the probability of losing a dollar.
• C)Her utility function is a straight line.
• D)None of the above are correct.

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Definitions:

Adrenal Medulla

The inner portion of the adrenal gland, responsible for producing adrenaline and noradrenaline, which are involved in stress responses.

Vasodilation

is the widening of blood vessels, resulting from relaxation of smooth muscle cells within the vessel walls, often increasing blood flow.

Parasympathetic Stimulation

The stimulation of the parasympathetic nervous system results in outcomes such as a lower heart rate and heightened activity in the digestive system.

Peripheral Chemoreceptors

Sensory receptors located in the carotid and aortic bodies that detect changes in blood oxygen, carbon dioxide, and pH levels.