Matt's Utility Function If Matt's Current Wealth Is $51,000

question 61

Multiple Choice

Matt's Utility Function If Matt's current wealth is $51,000, then

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

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Definitions:

Chloroplast

An organelle found in plant and algal cells that conducts photosynthesis, converting light energy into chemical energy stored in glucose.

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize foods from carbon dioxide and water.

Chloroplasts

Organelles found in plant cells and eukaryotic algae that conduct photosynthesis, converting light energy into chemical energy.

Thylakoids

Membrane-bound compartments inside chloroplasts and cyanobacteria, where the light-dependent reactions of photosynthesis occur.