A risk-averse person
a. has a utility curve where the slope increases with wealth, and might take a bet with a 80 percent chance of winning $300 and a 20 per chance of losing $300.
b. has a utility curve where the slope increases with wealth, and would never take a bet with a 80 percent chance of winning $300 and a 20 per cent chance of losing $300.
c. has a utility curve where the slope decreases with wealth, and might take a bet with a 80 percent chance of winning $300 and a 20 per chance of losing $300.
d. has a utility curve where the slope decreases with wealth, and would never take a bet with a 80 percent chance of winning $300 and a 20 per cent chance of losing $300.
c
You might also like to view...
Which of the following describes what happened to the economy of the South after the Civil War?
A. The South, with the aid of new capital investment, public and private, became industrialized two decades after the Civil War. B. The transcontinental railroads that were completed in the 1860s, 1870s, and 1880s played a key role in the industrialization of the South in the 1880s and 1890s. C. The South remained the poorest region in the country until the growth of the Sun Belt took off in the 1960s. D. The South remained a largely agricultural section of the economy until the 21st century.
The figure above shows Bill's Hotdogs, a monopolistically competitive firm. If other firms enter the market and have hot dogs that are very close substitutes for Bill's Hotdogs, then the demand curve for Bill's Hotdogs will ________
A) shift leftward and become more elastic B) shift rightward and become more elastic C) shift rightward and be parallel to the original demand curve D) shift leftward and be parallel to the original demand curve
Refer to Figure 11-6. In the figure above which letter represents the average total cost curve?
A) A B) B C) C D) D
Refer to Table 18-6. Sasha is a single taxpayer with an income of $60,000. What is his marginal tax rate and what is his average tax rate?
A) marginal tax rate = 17%; average tax rate = 21% B) marginal tax rate = 23%; average tax rate = 38% C) marginal tax rate = 38%; average tax rate = 23% D) marginal tax rate = 38%; average tax rate = 24%