Which of the Following Is Correct Concerning a Risk-Averse Person

question 21

Multiple Choice

Which of the following is correct concerning a risk-averse person?

• A)She would not play games where the probability of winning and losing a dollar are the same.
• B)She might not buy health insurance if she thinks her risks are low.
• C)Her marginal utility of wealth decreases as her income increases.
• D)All of the above are correct.

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Definitions:

Emerging Adults

A phase of the life span between adolescence and full-fledged adulthood which encompasses late teens through twenties, marked by exploration and self-discovery.

Well-Being

A state of comfort, health, or happiness.

Attended College

The act of having enrolled in and taken courses at a college or university.

Erikson

A psychologist known for his theory on the psychosocial development of human beings, which outlines eight stages from infancy to adulthood.