The Utility Function of a Risk-Averse Person Has a

question 29

Multiple Choice

The utility function of a risk-averse person has a

• A)positive slope and gets steeper as wealth increases.
• B)positive slope but gets flatter as wealth increases.
• C)negative slope but gets steeper as wealth increases.
• D)negative slope and gets flatter as wealth increases.

---

Definitions:

Gestalt Psychologist

A psychologist who studies the human mind and behavior as a whole, rather than breaking it down into parts, emphasizing the idea that "the whole is greater than the sum of its parts."

Unconscious Influences

Forces or processes occurring in the mind without one's awareness, impacting thoughts, feelings, and behaviors, as explored in psychoanalytic theories.

Structuralism

Early perspective in psychology associated with Wilhelm Wundt and Edward Titchener, in which the focus of study is the structure or basic elements of the mind.

Objective Introspection

A process in early psychology, involving the examination and observation of one's own mental and emotional processes from an objective standpoint.