1 1 point Saying that someone is risk-loving is the same as saying that they prefer certain outcomes to uncertain outcomes with the same expected value. True False 2 1 point An individual who prefers an uncertain outcome over a certain outcome, when both have the same expected value, is: O Risk-normal O Risk-averse Risk-loving OO Risk-neutral 3 1 point If there is a 60% chance of receiving $100,000 in profits and a 40% chance of having -$40,000 in profits, then the expected profits are equal to: Type your answer.. 1 point Which of the following statements is correct? O Risk-neutral individuals do not care about what their expected income/profits are. Only if a person is risk-loving will utility increases as income/profits increase. O Whether a person is risk-averse, risk-loving, or risk-neutral, utility increases as income/profits increase. 5 1 point Suppose an individual prefers $100 with certainty, to flipping a coin and receiving $220 if it lands on heads and $0 is it lands on tails. This individual is: O Risk-averse O Risk-loving O Risk-neutral O There is not enough information to determine if the individual is risk-loving, risk-neutral, or risk-averse 6 1 point If an individual is risk-neutral, their utility function will be linear (a straight line). True False 1 point A firm would be willing to pay less for imperfect information than for perfect information. True False