If one's indifference curves in a state space graph are concave to the origin, the individual is:
A)risk lover.
B)undecided about their attitude to risk.
C)not making rational decisions.
D)risk averse.

Question

Quizplus · Accepted Answer

Indifference curves that are concave to the origin indicate a preference for risk, as the individual demonstrates a greater satisfaction with uncertain outcomes over certain ones, which is characteristic of a risk lover.

If One's Indifference Curves in a State Space Graph Are