Look at the Utility Function Graphed Below and Select the Type

question 290

Multiple Choice

Look at the utility function graphed below and select the type of decision maker that corresponds to the graph.

• A) Risk averter
• B) Risk neutral
• C) Risk taker
• D) Risk player

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Definitions:

Compound-Interest GIC

A Guaranteed Investment Certificate (GIC) that grows by earning interest on the principal and the accumulated interest over time.

Percent Increase

The proportionate growth of a value over time, expressed as a percentage of the initial amount.

Successive Years

A term used to describe years that follow one after another without interruption.

Loan

A borrowed amount of money that is to be repaid along with interest.