David's Utility Function If David's Current Wealth Is $61,000, Then

question 305

Multiple Choice

David's Utility Function

If David's current wealth is $61,000, then

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

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Definitions:

Tissue Fluids

Fluids that exist in the spaces between cells and tissues in the body, facilitating nutrient and waste exchange.

Small Molecules

Organic compounds with low molecular weight, often used in pharmacology for their ability to modulate biological processes at the molecular level.

Inorganic Matter

Materials and substances not derived from living organisms, often characterized by the absence of carbon-hydrogen bonds.

Thoracic

Pertaining to the chest or thorax area of the body, which houses the heart and lungs among other organs.