The Greater the Rate of Decrease of Marginal Utility for an Individual

question 10

Multiple Choice

The greater the rate of decrease of marginal utility for an individual,

• A) The more risk averse the individual is and the more willing the individual is to pay premiums above the actuarially fair premium.
• B) The less risk averse the individual is and the more willing the individual is to pay premiums above the actuarially fair premium.
• C) The more risk averse the individual is and the less willing the individual is to pay premiums above the actuarially fair premium.
• D) The less risk averse the individual is and the amount the individual willing is to pay premiums above the actuarially fair premium is constant.

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Definitions:

Romantic Love

A deep emotional and passionate affection for another person, often associated with desire and attachment.

Consummate Love

A type of love described by psychologist Robert Sternberg as having three components: intimacy, passion, and commitment.

Commitment

A dedication or obligation that restricts freedom of action.

Lonely People

Individuals who experience a subjective feeling of isolation or lack of companionship.