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:

Personality

The combination of characteristics or qualities that form an individual's distinct character, influencing their behaviors, thoughts, and emotions.

Psychological costs

The mental and emotional strain or negative impacts experienced by individuals as a result of certain actions or decisions.

Care work

Labor performed in the service of others, often involving emotional, physical, and social support, such as childcare, eldercare, and healthcare.

Considered old

implies being regarded as aged or elderly, typically based on societal norms and perceptions about life stages and physical or mental capacities.