Diminishing Marginal Utility of Wealth Leads to Risk Aversion Because

question 81

Multiple Choice

Diminishing marginal utility of wealth leads to risk aversion because at a given level of wealth a dollar gained

• A) is worth more in additional utility than a dollar lost.
• B) is worth less in additional utility than a dollar lost.
• C) is worth as much in additional utility as a dollar lost.
• D) does not add to total utility.

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A systematic approach to research that aims to describe the characteristics of a phenomenon or population without manipulating variables.

Naturalistic Observation

A research method involving the systematic study of behavior in its natural context without intervention by the researcher.

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