How Would You Characterize a Consumer Who Is Risk Loving

question 38

Multiple Choice

How would you characterize a consumer who is risk loving?

• A)A consumer who may accept a risky prospect even if the expected gain is negative.
• B)A consumer who demands a positive expected gain as compensation for taking risk.
• C)A consumer who completely ignores risk and makes his/her decisions solely on the basis of expected values.
• D)None of the above.

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Definitions:

Merchandise

Goods that are bought and sold in commerce, particularly those related to retail trade.

Services

Intangible products that are consumed at the point of sale and do not result in ownership of physical goods.

Net Exports

The balance of a nation's trade, measured by subtracting its imports from its exports of goods and services.

Depreciation

The process of allocating the cost of a tangible or physical asset over its useful life, reflecting the decrease in value of an asset over time due to use, wear and tear, or obsolescence.