If you enjoy a day at the racetrack and don't really care if you end up with a little more or little less money at the end of the day,your behavior is most influenced by the ____ you put on your day's entertainment.
A) expected value
B) unexpected value
C) subjective utility
D) objective utility

Question

Quizplus · Accepted Answer

Subjective utility refers to the individual's personal satisfaction or enjoyment from an experience, regardless of any financial outcome. Therefore, if someone enjoys a day at the racetrack without concern for making or losing money, their behavior is most influenced by subjective utility. Expected value (A) and unexpected value (B) both involve an assessment of potential financial outcomes, which is not the primary factor for someone who is focused on enjoying the experience. Objective utility (D) is not a commonly used term in economics and does not apply to this scenario.

If You Enjoy a Day at the Racetrack and Don't