Figure 27-1.The Figure Shows a Utility Function

question 67

Multiple Choice

Figure 27-1.The figure shows a utility function.
-Refer to Figure 27-1.Suppose the person to whom this utility function applies begins with $600 in wealth.Starting from there,

• A)she would be willing to accept a coin-flip bet that would result in her winning $200 if the result was "heads" or losing $200 if the result was "tails."
• B)the pain of losing $200 of her wealth would equal the pleasure of adding $200 to her wealth.
• C)the pain of losing $200 of her wealth would exceed the pleasure of adding $200 to her wealth.
• D)the pleasure of adding $200 to her wealth would exceed the pain of losing $200 of her wealth.

---

Definitions:

Contextual Intelligence

The ability to understand the limits of our knowledge and to adapt that knowledge to an environment different from the one in which it was developed.

Adapt

To adapt means to adjust or change to suit new conditions or environments, showing flexibility in behavior or processes.

Obstacles

Any item, thing, factor, or situation that hinders progress.

Cognition

The process of learning and understanding gained through thinking, experiencing, and the use of the senses.