Figure 9-2

question 50

Multiple Choice

Figure 9-2. The figure shows a utility function for Mary Ann.

-Refer to Figure 9-2. Suppose the vertical distance between the points (0, A) and (0, B) is 5. If her wealth increased from $1,050 to $1,350, then

• A) Mary Ann's subjective measure of her well-being would increase by less than 5 units.
• B) Mary Ann's subjective measure of her well-being would increase by more than 5 units.
• C) Mary Ann would change from being a risk-averse person into a person who is not risk averse.
• D) Mary Ann would change from being a person who is not risk averse into a risk-averse person.

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Definitions:

Wrist

The joint connecting the forearm to the hand, encompassing eight small bones known as the carpal bones.

Medial Epicondyle

The bony prominence on the inner side of the humerus, to which muscles of the forearm are attached.

Lateral Epicondyle

A bony prominence on the outside (lateral side) of the humerus (upper arm bone) where tendons of the forearm muscles attach.

Flexors

Muscles that decrease the angle between bones at a joint, functioning to bend or flex a part of the body.