The individual pictured in Figure 5.2.2:
A) prefers a 50% chance of $100 and a 50% chance of $50 to a sure $75.
B) would receive a utility of 300 from a 50% chance of $100 and a 50% chance of $50.
C) would receive a utility of 300 from a sure $75.
D) would receive a utility of 250 from a sure $75.
E) is one for whom income is a measure of well-being.

Question

Quizplus · Accepted Answer

The Answer of The individual pictured in Figure 5.2.2:
A) prefers a 50% chance of $100 and a 50% chance of $50 to a sure $75.
B) would receive a utility of 300 from a 50% chance of $100 and a 50% chance of $50.
C) would receive a utility of 300 from a sure $75.
D) would receive a utility of 250 from a sure $75.
E) is one for whom income is a measure of well-being.

The Individual Pictured in Figure 5.2.2