A Consumer Who Is Risk Neutral Is Best Characterized as ________

question 35

Multiple Choice

A consumer who is risk neutral 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:

Intervention

The action or process of intervening, which may involve direct involvement in a situation to alter an outcome or prevent a problem.

Prevention

Actions or measures taken to stop something undesirable from happening, such as disease or accidents.

Intervention

The action or process of intervening, often to bring about change or alter a course of events.

Disorder

A disruption of normal physical or mental functions; a disease or abnormal condition.