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:

Setback

An unexpected challenge or obstacle that delays progress or reverses some of the advances already made.

Farther

Used to describe a greater physical distance when comparing two or more points.

Testing

The process of evaluating the functionality, performance, or quality of a product, system, or concept through examination and trial.

Walked

The past tense of walk, indicating movement by foot at a steady pace.