A Risk-Averse Person

question 137

Multiple Choice

A risk-averse person

• A)has a utility curve where the slope increases with wealth, and might take a bet with a 70 percent chance of wining $400 and a 30 per chance of losing $400.
• B)has a utility curve where the slope increases with wealth, and would never take a bet with a 70 percent chance of wining $400 and a 30 per cent chance of losing $400.
• C)has a utility curve where the slope decreases with wealth, and might take a bet with a 70 percent chance of wining $400 and a 30 per chance of losing $400.
• D)has a utility curve where the slope decreases with wealth, and would never take a bet with a 70 percent chance of wining $400 and a 30 per cent chance of losing $400.

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Definitions:

Sneaking Off

An attempt to leave a place quietly or unnoticed, often to avoid detection or to escape.

Frustrated

Feeling annoyed or angry because one is unable to achieve or do something.

Relieve Anger

The process of diminishing feelings of anger through various techniques, such as physical activity, expressing emotions, or engaging in relaxation practices.

Survivor Guilt

An unpleasant emotion associated with living through an experience during which other people died.