Suppose That an Individual Is Risk-Averse

question 42

Multiple Choice

Suppose that an individual is risk-averse.If this individual's utility function is depicted in a graph,with income measured on the horizontal axis and utils on the vertical axis,the graph will be an upward-sloping:

• A)straight line through the origin.
• B)straight line with a positive vertical intercept.
• C)curve with a steadily increasing slope (i.e. ,a curve that is convex from below).
• D)curve with a steadily decreasing slope (i.e. ,a curve that is concave from below).

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Definitions:

Discretionary Stakeholder

A party with a non-essential interest or stake in a project or business that can affect or be affected by its outcome but is not engaged in daily operations.

Influence

The capacity to have an effect on the character, development, or behavior of someone or something.

Urgent Claims

Demands or requests that require immediate attention or action due to their critical nature.

Nascent Entrepreneurs

Individuals who have set up a business they will own or co-own that is less than 3 months old and has not yet generated wages or salaries for the owners.