Given uncertainty,individuals attempt to maximize their:
A)adverse selection.
B)expected utility.
C)risk aversion.
D)consumption.

Question

Quizplus · Accepted Answer

In the face of uncertainty, individuals attempt to make decisions that will maximize their expected utility. This means taking into account not only the potential rewards of a decision, but also the possible risks and their probabilities of occurrence. By maximizing expected utility, individuals can make the best possible decision given the information available to them.

Given Uncertainty,individuals Attempt to Maximize Their