« previous next »

Author Question: If Al is risk averse, as his wealth increases, his total utility of wealth ________ and his marginal ... (Read 149 times)

bobthebuilder

  • Hero Member
  • *****
  • Posts: 567
on: Jun 29, 2018
If Al is risk averse, as his wealth increases, his total utility of wealth ________ and his marginal utility of wealth ________.
 
  A) increases; increases
  B) increases; decreases
  C) decreases; increases
  D) decreases; decreases

Question 2

The indifference curves in the figure above (I1, I2, and I3 ) reflect Peter's consumption preferences. Which of the following combinations of goods does Peter prefer the most?
 
  A) 48 slices of pizza and 12 chocolate bars
  B) 24 slices of pizza and 24 chocolate bars
  C) 40 slices of pizza and 20 chocolate bars
  D) 32 slices of pizza and 8 chocolate bars


Harbringer

  • Sr. Member
  • ****
  • Posts: 329
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

Anti-aging claims should not ever be believed. There is no supplement, medication, or any other substance that has been proven to slow or stop the aging process.

Did you know?

Prostaglandins were first isolated from human semen in Sweden in the 1930s. They were so named because the researcher thought that they came from the prostate gland. In fact, prostaglandins exist and are synthesized in almost every cell of the body.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Species richness increases with island size. Species richness increases with island size.
These species are all at risk of extinction. Species with slow life-h These species are all at risk of extinction. Species with slow life-h
The effective temperature, or black body temperature, of the Sun (5777 K) is the temperature a black The effective temperature, or black body temperature, of the Sun (5777 K) is the temperature a black
Adding additional amounts of ethyl alcohol (ethanol) increases the frequency reading. Adding additional amounts of ethyl alcohol (ethanol) increases the frequency reading.
Major Risk Factors for Hypertension Major Risk Factors for Hypertension
Risk assessment analyzes Risk assessment analyzes
Video: Phases of an Action Potential - Resting Potential, Threshold, Rising, Falling, & Recovery Phases

For a complete list of videos, visit our video library