A Risk-Averse Person

question 36

Multiple Choice

A risk-averse person

• A)has a utility curve where the slope increases with wealth,and might take a bet with a 80 percent chance of winning $300 and a 20 per chance of losing $300.
• B)has a utility curve where the slope increases with wealth,and would never take a bet with a 80 percent chance of winning $300 and a 20 per cent chance of losing $300.
• C)has a utility curve where the slope decreases with wealth,and might take a bet with a 80 percent chance of winning $300 and a 20 per chance of losing $300.
• D)has a utility curve where the slope decreases with wealth,and would never take a bet with a 80 percent chance of winning $300 and a 20 per cent chance of losing $300.

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Definitions:

Crystallized Intelligence

Crystallized intelligence is the ability to use learned knowledge and experience.

Chemical Symbols

shorthand notations used to represent chemical elements (e.g., H for Hydrogen, O for Oxygen) based on the periodic table.

Practical Intelligence

The intellectual skills used in everyday problem solving. (Sometimes called tacit intelligence.)

Sternberg's Intelligences

A theory proposing three main types of intelligence: analytical (problem-solving abilities), creative, and practical, which help individuals face various life challenges.