Matt's Utility Function If Matt's Current Wealth Is $51,000

question 338

Multiple Choice

Matt's Utility Function If Matt's current wealth is $51,000, then

• A) his gain in utility from gaining $1,000 is greater than his loss in utility from losing $1,000. Matt is risk averse.
• B) his gain in utility from gaining $1,000 is greater than his loss in utility from losing $1,000. Matt is not risk averse.
• C) his gain in utility from gaining $1,000 is less than his loss in utility from losing $1,000. Matt is risk averse.
• D) his gain in utility from gaining $1,000 is less than his loss in utility from losing $1,000. Matt is not risk averse.

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Definitions:

Early Dynastic

Refers to the initial periods of a civilization's history marked by the formation of the first centralized states, dynasties, or kingdoms, such as in ancient Egypt and Mesopotamia.

Palette

A thin board with a thumb hole at one end on which an artist lays and mixes colors; any surface so used. Also, the colors or kinds of colors characteristically used by an artist. In ancient Egypt, a slate slab used for preparing makeup.

Narmer

An ancient Egyptian pharaoh who is believed to have unified Upper and Lower Egypt, often associated with the Narmer Palette.

God-King

A ruler who is considered to be both a god and a king, embodying the divine right to govern.