A Consumer Who Is Risk Averse Is Best Characterized as ________

question 103

Multiple Choice

A consumer who is risk averse is best characterized as ________.

• A) a consumer who may accept a risky prospect even if the expected gain is negative
• B) a consumer who demands a positive expected gain as compensation for taking risk
• C) a consumer who completely ignores risk and makes his or her decisions based solely on expected values
• D) None of the above

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Definitions:

Communication Message

The information or key point that is being conveyed from the sender to the receiver through various means.

Enthusiasm

A feeling of energetic interest in a particular subject or activity and an eagerness to be involved in it.

Interpreting

The process of translating spoken or signed language into another language.

Communication

The act of exchanging information or expressing ideas and feelings verbally or non-verbally.