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Author Question: If Al is risk averse, as his wealth increases, his total utility of wealth ________ and his marginal ... (Read 151 times)

bobthebuilder

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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

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Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

C


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