Figure: Risk Aversion (Figure: Risk Aversion) Bob and Nancy Have the Same Income

question 44

Multiple Choice

Figure: Risk Aversion
(Figure: Risk Aversion) Bob and Nancy have the same income and the same total utility.The figure Risk Aversion shows their individual utility functions.Based upon this graph, which of the following is true?

• A)Nancy is more risk-averse than Bob because her marginal utility curve is flatter than Bob's marginal utility curve.
• B)Nancy is more risk-averse than Bob because her marginal utility curve is steeper than Bob's marginal utility curve.
• C)Bob is more risk-averse than Nancy because his marginal utility curve is steeper than Nancy's marginal utility curve.
• D)Bob is more risk-averse than Nancy because his marginal utility curve is flatter than Nancy's marginal utility curve.

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Definitions:

Color Family

A group of colors that share certain characteristics, such as warmth or coolness, allowing them to blend well together.

Cooler Temperatures

Lower than average ambient temperatures, often perceived as refreshing or cold.

Cool Colors

Colors perceived as calming and soothing, often associated with shades of blue, green, and purple.

Appropriate Level

The suitable or recommended intensity or degree of a condition, activity, or measurement.