What principle explains why the utility function gets flatter as wealth rises?
A) the law of demand
B) cost analysis
C) the risk-reward trade-off
D) diminishing marginal utility
Correct Answer:
Verified
Q14: A person's utility level is his or
Q15: Which of the following statements about the
Q16: The marginal utility of an extra dollar
Q17: The slope of a utility function is:
A)positive
Q18: The utility function for wealth indicates that:
A)there
Q20: Your marginal utility would be highest at
Q21: Diminishing marginal utility makes people:
A)wealthy.
B)risk averse.
C)less prosperous.
D)risk
Q22: How does a gain of $1,000 versus
Q23: Shantelle faces a risk where she has
Q24: When considering diminishing marginal utility, how do
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