The Utility Function of a Risk-Averse Person Has a

question 29

Multiple Choice

The utility function of a risk-averse person has a

• A)positive slope and gets steeper as wealth increases.
• B)positive slope but gets flatter as wealth increases.
• C)negative slope but gets steeper as wealth increases.
• D)negative slope and gets flatter as wealth increases.

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Definitions:

Constructive Eviction

An eviction that occurs by the act of the landlord depriving the tenant of something of a substantial nature that was called for under the lease.

Tenants in Coverture

Refers to a legal doctrine whereby upon marriage, a woman's legal rights and obligations were subsumed by those of her husband, an outdated concept not widely practiced today.

Undivided Share

Refers to an ownership interest in property where each owner holds an equal right to the entire property rather than a specific identifiable part.