Suppose you are offered the following two prospects, a: (0, 1, 0: 3000, 2000, 1000) or b: (1/2, 1/4, 1/4: 3000, 2000, 1000) . You are risk averse if:
A) b is preferred to a.
B) you cannot rank the two prospects.
C) a is preferred to b.
D) you are indifferent between a and b.
Correct Answer:
Verified
Q2: Pat's utility function is u(y)= y1/2 and
Q3: Suppose you are offered the following 2
Q4: Stephanie's utility function is given by U
Q5: Which of the following phenomena constitutes examples
Q6: Risk- aversion:
A)means that an individual would accept
Q7: A risk- inclined individual is characterized by
Q8: In choices involving risk, an individual chooses:
A)the
Q9: State- dependent preferences depend on:
A)state income tax
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