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When we apply the energy conversation principle to a cylinder rolling down an incline without sliding, we exclude the work done by friction because:
Wealth
The total value of all financial and non-financial assets owned by an individual, company, sector, or nation minus any liabilities.
Expected Utility Function
A mathematical representation of an individual's preference for certain outcomes over others, considering the uncertainty of those outcomes.
Utility Function
A mathematical representation of a consumer’s preference ordering over a choice set, used to describe how consumers allocate their income to maximize their satisfaction.
Risk Neutral
An attitude or preference indicating indifference between choices with uncertain outcomes, focusing instead on the expected values.
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