Risk- averse behaviour is consistent with the diminishing marginal utility of income.

Name: Risk- averse behaviour is consistent with the diminishing marginal utility of income.
Brand: Quizplus
Rating: 4.7 (54 reviews)

Question

Quizplus · Accepted Answer

Risk-averse behavior is consistent with the diminishing marginal utility of income because as income increases, the additional satisfaction (utility) gained from each additional unit of income decreases, making individuals less willing to risk losing what they have for potential gains.

Risk- Averse Behaviour Is Consistent with the Diminishing Marginal Utility