If a Person Is Risk Averse,then She Has

question 82

Multiple Choice

If a person is risk averse,then she has

• A)diminishing marginal utility of wealth,implying that her utility function gets flatter as wealth increases.
• B)diminishing marginal utility of wealth,implying that her utility function gets steeper as wealth increases.
• C)increasing marginal utility of wealth,implying that her utility function gets flatter as wealth increases.
• D)increasing marginal utility of wealth,implying that her utility function gets steeper as wealth increases.

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Definitions:

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed, a concept that develops in infancy.

Conservation

In cognitive development, the understanding that certain properties of objects remain the same, despite changes in the object's appearance.

Egocentrism

A cognitive characteristic in which an individual is unable to differentiate between their own perspective and that of another person.

Affordances

The possibilities for action offered by objects and environments to an organism.