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:

Teens

The period of life characterized by ages 13 to 19, during which a person transitions from childhood to adulthood.

20's Or 30's

Refers to the age groups ranging from 20 to 29 years old and 30 to 39 years old, respectively, often considered significant periods in adult development.

Piaget

Refers to Jean Piaget, a Swiss psychologist known for his pioneering work in the study of child development and cognitive psychology.

Formal Operational

A stage of cognitive development, according to Jean Piaget, where individuals (around 12 years and older) develop the ability to think abstractly, reason logically, and draw conclusions from available information.