Author Question: John's utility from an additional dollar increases more when he has 1,000 than when he has 10,000. ... (Read 73 times)

leilurhhh

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John's utility from an additional dollar increases more when he has 1,000 than when he has 10,000. From this, we can conclude that John
 
  A) is risk averse.
  B) is risk loving.
  C) is risk neutral.
  D) has a negative marginal utility of wealth.

Question 2

John derives more utility from having 1,000 than from having 100. From this, we can conclude that John
 
  A) is risk averse.
  B) is risk loving.
  C) is risk neutral.
  D) has a positive marginal utility of wealth.



reversalruiz

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Answer to Question 1

A

Answer to Question 2

D



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