Diminishing Marginal Utility of Wealth Implies That the Utility Function

question 84

Multiple Choice

Diminishing marginal utility of wealth implies that the utility function

• A)has increasing slope and a person is risk averse.
• B)has increasing slope and a person is not risk averse.
• C)has decreasing slope and a person is risk averse
• D)has decreasing slope and a person is not risk averse.

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Definitions:

Stimulants

Substances that increase activity in the brain and nervous system, enhancing alertness and energy.

Depressants

Substances that reduce the activity of the central nervous system, leading to effects such as relaxation, reduced anxiety, and sleepiness.

Narcotics

Narcotics are drugs that relieve pain and can induce sleep, but also have potential for dependency and abuse.

Planning

The process of thinking about and organizing the activities required to achieve a desired goal, involving foresight and strategic decision-making.