John derives more utility from having $1,000 than from having $100.From this,we can conclude that John
A) is risk averse.
B) is risk loving.
C) is risk neutral.
D) has a positive marginal utility of wealth.

Question

Quizplus · Accepted Answer

The fact that John derives more utility from having $1,000 than from having $100 indicates that he has a positive marginal utility of wealth. This means that as John's wealth increases, the additional utility he gains from each additional dollar of wealth decreases. It does not necessarily indicate whether he is risk averse, risk loving, or risk neutral.

John Derives More Utility from Having $1,000 Than from Having