A risk- inclined individual will:
A)never like a bet.
B)place a smaller utility on gaining $100 than on losing $100.
C)always buy a lottery ticket, whatever his or her chances of winning.
D)place a greater utility on gaining $100 than on losing $100.

Question

Quizplus · Accepted Answer

A risk-inclined individual tends to be attracted to situations with a greater potential for gain and is willing to accept higher levels of risk in order to achieve that gain. Therefore, such an individual would place a greater utility ("value") on the potentially positive outcome of gaining $100 than on the potentially negative outcome of losing $100. This makes option D the best answer.

A Risk- Inclined Individual Will