« previous next »

Author Question: If Al is risk averse, as his wealth increases, his total utility of wealth ________ and his marginal ... (Read 122 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?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

Did you know?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

Did you know?

On average, someone in the United States has a stroke about every 40 seconds. This is about 795,000 people per year.

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

Nursing diagnositic process - risk for infection Nursing diagnositic process - risk for infection
Risk of death from motorcycle accidents (dashed lines) and passenger accidents (solid lines) per 100 Risk of death from motorcycle accidents (dashed lines) and passenger accidents (solid lines) per 100
Compression ratio is the ratio of the total cylinder volume (when the piston is at the bottom of ... Compression ratio is the ratio of the total cylinder volume (when the piston is at the bottom of ...
The areas in which reading-associated increases in activity were observed in the fMRI study of ... The areas in which reading-associated increases in activity were observed in the fMRI study of ...
Risk Factors of Osteoporosis Risk Factors of Osteoporosis
Age is the leading risk factor for cancer Age is the leading risk factor for cancer
Video: Fermentation pathways

For a complete list of videos, visit our video library