Someone who is risk-averse has
A) diminishing marginal utility of wealth.
B) constant marginal utility of wealth.
C) increasing marginal utility of wealth.
D) less marginal utility of wealth than someone who is risk-neutral.
A
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Gary, Kevin, and Joshua are three individuals who were previously employed but do not have jobs now. Gary lost his job a year ago
Although he would like to have a job, he has given up looking for one as he thinks there are no suitable jobs available for him. Kevin was working as a finance teacher, but quit his job a few months back to become a stock broker. Ever since he quit his job, he is unable to get a new one, although he is actively seeking. Joshua was employed in a steel mill. He lost his job when the labor union in his mill demanded a hike in wages. Classify the three individuals according to their type of unemployment.
The consumption function shows the relationship between real consumption spending and
a. real wealth b. the interest rate c. expectations d. real disposable income e. debt
Hyperinflation may stimulate significant increases in real output in an economy.
Answer the following statement true (T) or false (F)
A monopolistically competitive firm finds its profit-maximizing rate of output by equating
A) the marginal revenue of advertising with the marginal cost of advertising. B) average revenue and average total cost. C) price and marginal cost. D) marginal revenue and marginal cost.