Which of the Following Statements Is True About the Value

Multiple Choice

Which of the following statements is true about the value function?

A) It is a mathematical formulation that seeks to explain observed behavior by making assumptions about preferences.
B) Economists say that it is risk seeking in losses and risk averse in gains.
C) In the language of mathematics it is concave in losses and convex in gains.
D) Economists say that it is risk averse in losses and risk seeking in gains.
E) The nature of the value function is such that it is much steeper in gains than in losses.