Figure 27-4

question 1

Multiple Choice

Figure 27-4.The figure shows a utility function for Alex.
-Refer to Figure 27-4.From the appearance of Alex's utility function,we know that

• A)if Alex owns a house,then he definitely would buy fire insurance provided the cost of the insurance was reasonable.
• B)Alex would voluntarily exchange a portfolio of stocks with a high average return and a high level of risk for a portfolio with a low average return and a low level of risk.
• C)Alex is risk averse.
• D)Alex is not risk averse.

---

Definitions:

Game Playing

The act of engaging in activities governed by a set of rules, often for entertainment, competition, or educational purposes.

Neo-Piagetian

An approach that extends Piaget's theory of cognitive development by incorporating factors such as information processing, strategy use, and the role of knowledge in cognitive development.

Self-Concept Development

The process by which individuals build a detailed understanding of their abilities, behaviors, and character over time.

Representational Systems

In neo-Piagetian terminology, the third stage in development of self-definition, characterized by breadth, balance, and the integration and assessment of various aspects of the self.