John Derives More Utility from Having $1,000 Than from Having

question 65

Multiple Choice

John derives more utility from having $1,000 than from having $100.From this,we can conclude that John

• A) is risk averse.
• B) is risk loving.
• C) is risk neutral.
• D) has a positive marginal utility of wealth.

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Definitions:

Comparative Common-Size Balance Sheet

A balance sheet that presents financial figures as percentages of a total in order to facilitate year-over-year and company-to-company comparisons.

Significant Changes

Important alterations that can have a substantial impact on a company's operations, financial performance, or strategy.

Balance Sheet Components

The major sections of a balance sheet, typically including assets, liabilities, and shareholders' equity.

Average Operating Assets

The average value of assets utilized in the regular operations of a business to generate earnings, calculated over a certain period.