Consider Four Individuals: Hank, Babe, Barry, and Willie

question 24

Multiple Choice

Consider four individuals: Hank, Babe, Barry, and Willie.Hank's marginal utility of income curve is constant; Babe's marginal utility of income curve is slightly diminishing; Barry's marginal utility of income curve is strongly diminishing; and Willie's marginal utility of income curve is upward sloping.All else equal, which of these individuals will be most risk-averse?

• A)Hank
• B)Babe
• C)Barry
• D)Willie

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Definitions:

Incubation

A period of subconscious processing that occurs between the time a problem is initially encountered and when it is eventually solved.

Creative Process

A multi-stage process involving the generation, development, and expression of unique ideas or solutions to problems.

Illumination

The provision of light, or the clarity or understanding achieved through intellectual or spiritual insight.

Group Decision Making

A process in which multiple individuals come together to analyze problems and evaluate options to achieve a collective decision.