A Risk-Averse Person

question 36

Multiple Choice

A risk-averse person

• A)has a utility curve where the slope increases with wealth,and might take a bet with a 80 percent chance of winning $300 and a 20 per chance of losing $300.
• B)has a utility curve where the slope increases with wealth,and would never take a bet with a 80 percent chance of winning $300 and a 20 per cent chance of losing $300.
• C)has a utility curve where the slope decreases with wealth,and might take a bet with a 80 percent chance of winning $300 and a 20 per chance of losing $300.
• D)has a utility curve where the slope decreases with wealth,and would never take a bet with a 80 percent chance of winning $300 and a 20 per cent chance of losing $300.

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Definitions:

Salaries

Payments made to employees, typically on a monthly or biweekly basis, for performing their job duties, often expressed as an annual total.

Obese Men

Males who have excessive body fat that presents potential health risks, according to specific medical criteria.

Women

Adult human females, often referred to in the context of discussions on gender roles, equality, and rights.

Qualifications

The skills, knowledge, and experiences that make an individual suitable for a particular job or activity.