A risk averse person has:a.a variable marginal utility of income.b.a constant marginal utility of income.c.a decreasing marginal utility of income.d.an increasing marginal utility of income

In the class lecture notes, we motivated how “risk aversion” (the dislike of risk) is the same as diminishing marginal utility of wealth.  The basic idea is thatSelected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.aFrom a utility standpoint, the pain of losing $100 is greater than the happiness of winning $100.bThe greater a person’s wealth, the more the person dislikes taking a gamble.cAn insurance company typically charges a higher premium to wealthier customers.dWealthier people are in a better position to take gambles because they will still have money left over.

A.1 If an individual is risk averse, then:i. He prefers any lottery to amounts of money that are certain.ii. The certainty equivalent of a lottery is higher than its expected value.X. The utility function is concave.iv. The utility function is decreasing.

Risk –Averse” means- Options : ask someone for money information or help when you are legally responsible for something have a strong dislike for taking risks none of these

Risk utility rises at a decreasing rate for a _____ person.Group of answer choicesrisk-neutralrisk-averserisk-seekingrisk-indifferent

Marginal utility is:Multiple Choicediminishing.constant.increasing.unpredictable.