Risk Aversion Is Best Explained by

question 21

Multiple Choice

Risk aversion is best explained by

• A)timidity.
• B)increasing marginal utility of income.
• C)constant marginal utility of income.
• D)decreasing marginal utility of income.

---

Definitions:

Psychological Disorder

A condition characterized by abnormal thoughts, feelings, or behaviors that may cause distress or impair functioning.

Proactive Coping

Proactive coping involves taking anticipatory actions to prevent or mitigate future stress or adversity before it happens.

Catastrophe

A sudden and widespread disaster that results in significant damage or suffering, often bringing about dramatic changes.

Suggestible

Being suggestible refers to the tendency of an individual to accept and act on suggestions by others, often used to describe a person's responsiveness to hypnosis or persuasion.