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Author Question: John's utility from an additional dollar increases more when he has 1,000 than when he has 10,000. ... (Read 75 times)

leilurhhh

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  • Posts: 560
on: Jul 1, 2018
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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Reply #1 on: Jul 1, 2018
Answer to Question 1

A

Answer to Question 2

D


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