-The Above Figure Shows the Utility of Wealth Curve for a Homeowner

question 160

Multiple Choice

-The above figure shows the utility of wealth curve for a homeowner whose only possession is a $50,000 house. Which of the following statements is TRUE?

• A) This person has diminishing marginal utility of wealth.
• B) This person is not risk averse.
• C) Risky situations cause this person no loss of utility.
• D) None of the above are correct.

---

Definitions:

Memo

A written message, usually in a business setting, intended to communicate information or instructions within an organization.

Face-to-Face Conversation

Direct interaction between two or more persons, where they communicate in each other's physical presence.

Location-sensing Capabilities

Refers to the technology in devices that allows them to determine and communicate their geographical position.

Mobile Devices

Portable electronic devices that have computing capabilities, including smartphones and tablets.