John's Utility from an Additional Dollar Increases More When He

question 34

Multiple Choice

John's utility from an additional dollar increases more when he has $1,000 than when he has $10,000.From this,we can conclude that John

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

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Definitions:

Retain

To keep in possession or continue to use or employ.

Motivate

The process of stimulating people to actions that fulfill their needs or expectations, often used in the context of leadership or personal development.

Return On Investment

A financial metric used to measure the efficiency of an investment by comparing the gain (or loss) from an investment to its cost.

Training

The act of enhancing the knowledge, skills, and competencies of an individual or group for a specific purpose, such as improving performance in current or future roles.