Suppose That Thom Experiences a Greater Loss in Utility If

question 54

Multiple Choice

Suppose that Thom experiences a greater loss in utility if he loses $50 than he would gain in utility if he wins $50. This implies that Thom's

• A)marginal utility diminishes as wealth rises, so he must be risk averse.
• B)marginal utility diminishes as wealth rises, but we can't tell from this if he is risk averse.
• C)marginal utility increases as wealth rises, so he must be risk averse.
• D)marginal utility increases as wealth rises, but we can't tell from this if he is risk averse.

---

Definitions:

Nutrient

A substance that provides nourishment essential for the growth and maintenance of life.

Nitrites

Compounds containing the nitrite ion, NO2−, often used in food preservation and potentially harmful in high concentrations.

Bicarbonate

A bicarbonate ion (HCO3-) or a salt containing it, which acts as a buffer to maintain the pH balance in blood and other fluids.

Greenhouse Effect

Reradiation of solar heat toward the Earth, caused by an atmosphere that allows the sun’s rays to pass through, but traps the heat in the same manner as the glass of