If you would refuse to engage in a business activity that gives you a 50-50 chance of making a $100 net profit or making a $100 net loss,economists would describe you as a:

Question

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A risk-averse person is one who prefers a certain outcome over an uncertain one, even if the expected value of the uncertain one is higher. In this case, the expected value of the business activity is zero, but there is a 50% chance of gaining $100 and a 50% chance of losing $100. A risk-averse person would prefer to avoid the uncertain outcome and not engage in the business activity.

If You Would Refuse to Engage in a Business Activity