If a Person Is Risk Averse,then She Has

question 82

Multiple Choice

If a person is risk averse,then she has

• A)diminishing marginal utility of wealth,implying that her utility function gets flatter as wealth increases.
• B)diminishing marginal utility of wealth,implying that her utility function gets steeper as wealth increases.
• C)increasing marginal utility of wealth,implying that her utility function gets flatter as wealth increases.
• D)increasing marginal utility of wealth,implying that her utility function gets steeper as wealth increases.

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Definitions:

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A period in human history characterized by the shift from traditional industry to an economy based on the processing and management of information, largely facilitated by technological advancements.

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A form of therapy focusing on personal responsibility and addressing current problems and behaviors to satisfy basic needs.

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