A Risk-Averse Person Has

question 51

Multiple Choice

A risk-averse person has

• A)a utility function whose slope gets flatter as wealth rises.This means they have increasing marginal utility of wealth.
• B)a utility function whose slope gets flatter as wealth rises.This means they have diminishing marginal utility of wealth.
• C)a utility function whose slope gets steeper as wealth rises.This means they have increasing marginal utility of wealth.
• D)a utility function whose slope gets steeper as wealth rises.This means they have diminishing utility of wealth.

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Definitions:

American Standard

Often refers to a set of guidelines or specifications used in the United States for various products, practices, or measurements to ensure quality, safety, and efficiency.

New Immigrants

Wave of newcomers from southern and eastern Europe, including many Jews, who became a majority among immigrants to America after 1890.

Close-Knit Communities

Social groups characterized by strong bonds, frequent interactions, and a high degree of solidarity among members.

Scientific Management

Management campaign to improve worker efficiency using measurements like “time and motion” studies to achieve greater productivity; introduced by Frederick Winslow Taylor in 1911.