Matt's Utility Function If Matt's Current Wealth Is $51,000

question 342

Multiple Choice

Matt's Utility Function If Matt's current wealth is $51,000, then

• A) his gain in utility from gaining $1,000 is greater than his loss in utility from losing $1,000. Matt is risk averse.
• B) his gain in utility from gaining $1,000 is greater than his loss in utility from losing $1,000. Matt is not risk averse.
• C) his gain in utility from gaining $1,000 is less than his loss in utility from losing $1,000. Matt is risk averse.
• D) his gain in utility from gaining $1,000 is less than his loss in utility from losing $1,000. Matt is not risk averse.

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