If Someone's Utility Function Exhibits Diminishing Marginal Utility of Wealth

question 16

True/False

If someone's utility function exhibits diminishing marginal utility of wealth, this person is risk averse.

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Definitions:

Sternal End

The part of a bone that is located nearest to the sternum, often referring to the end of the clavicle that articulates with the sternum.

Manubrium

The upper section of the sternum (breastbone), providing attachment points for the clavicles and the first pair of ribs.

Tensor Veli Palatini

A muscle of the soft palate involved in swallowing and opening the Eustachian tube to equalize middle ear pressure.

Digastrics

A muscle located under the jaw that acts in the opening of the mouth and drawing back of the lower jaw.