Economists assume that, in general, when individuals are faced with two choices that have the same expected value, they will prefer the choice with:
A)lower risk.
B)higher risk.
C)the higher opportunity cost.
D)the lower future value.

Question

Quizplus · Accepted Answer

Economists generally assume that individuals are risk-averse, meaning they prefer options that offer more certainty or lower risk when the expected outcomes are the same. This preference for lower risk reflects a natural inclination to avoid potential losses or negative outcomes.

Economists Assume That, in General, When Individuals Are Faced with Two