Which of the Following Is Correct Concerning a Risk-Averse Person

question 21

Multiple Choice

Which of the following is correct concerning a risk-averse person?

• A)She would not play games where the probability of winning and losing a dollar are the same.
• B)She might not buy health insurance if she thinks her risks are low.
• C)Her marginal utility of wealth decreases as her income increases.
• D)All of the above are correct.

---

Definitions:

Finished Goods Inventory

The completed products that are ready for sale but have not been sold yet.

Manufacturing Overhead

Represents all the indirect costs associated with the production process of a company, including utilities, depreciation, and salaries not directly tied to specific units of product.

Direct Labor

The cost of wages and benefits for employees directly involved in the production of goods or services.

Raw Materials

The initial inputs in production, including basic substances used to manufacture goods.