John Brown's Utility of Income Function Is U = Log(I+1)

question 99

Multiple Choice

John Brown's utility of income function is U = log(I+1) , where I represents income. From this information you can say that:

• A) John Brown is risk neutral.
• B) John Brown is risk loving.
• C) John Brown is risk averse.
• D) We need more information before we can determine John Brown's preference for risk.

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Definitions:

Individual Mortality

The inevitable fact of death that each person must face, often a focus in existential and psychological discussions.

Collective Action

Joint action taken by a group of people aimed at achieving a common goal, often in the context of social or political initiatives.

Social Loafing

The phenomenon where individuals exert less effort when working in a group than when working alone.

Collective Action

Action taken together by a group of people whose goal is to enhance their status and achieve a common objective.