Figure 27-2

question 110

Multiple Choice

Figure 27-2.The figure shows a utility function for Britney.
-Refer to Figure 27-2.Suppose Britney begins with $1,050 in wealth.Which of the following coin-flip bets would she definitely not be willing to accept?

• A)If it is "heads," she wins $100;if it is tails,she loses $95.
• B)If it is "heads," she wins $150;if it is tails,she loses $150.
• C)If it is "heads," she wins $150;if it is tails,she loses $140.
• D)She definitely would not accept any of these bets.

---

Definitions:

Tea Act

A British law passed in 1773 that granted the East India Company a monopoly on tea sales in the American colonies, sparking protests that led to the American Revolution.

New Jersey Plan

A proposal presented at the Constitutional Convention of 1787, advocating for a single legislative body with equal representation for each state, regardless of size.

Federal Government

The national government of a federal state, which shares power with sub-national entities such as states or provinces, and is responsible for areas like defense, foreign policy, and currency.

Tax Proportion

The relationship between the amount of tax levied on an entity and its income, assets, or the value of a transaction.