Refer to the data provided in Table 17.2 below to answer the following question(s). The table shows the relationship between income and utility for Sue.
Table 17.2
$$\begin{array} { | c | c | }
\hline \text { Income } & \text { Total Utility } \
\hline \$ 0 & 0 \
\hline \$ 20,000 & 20 \
\hline \$ 40,000 & 40 \
\hline \$ 60,000 & 60 \
\hline \$ 80,000 & 80 \
\hline
\end{array}$$
-Refer to Table 17.2. From the table, we can see that Sue is
A) risk-averse.
B) risk-loving.
C) risk-neutral.
D) We cannot determine Sue's attitude toward risk from the table.

Question

Refer to the data provided in Table 17.2 below to answer the following question(s). The table shows the relationship between income and utility for Sue.
Table 17.2
 $$\begin{array} { | c | c | } 
\hline \text { Income } & \text { Total Utility } \
\hline \$ 0 & 0 \
\hline \$ 20,000 & 20 \
\hline \$ 40,000 & 40 \
\hline \$ 60,000 & 60 \
\hline \$ 80,000 & 80 \
\hline
\end{array}$$
-Refer to Table 17.2. From the table, we can see that Sue is
A) risk-averse.
B) risk-loving.
C) risk-neutral.
D) We cannot determine Sue's attitude toward risk from the table.

Quizplus · Accepted Answer

The table shows a direct, linear relationship between income and total utility, indicating that Sue's utility increases proportionally with income, which is characteristic of risk neutrality.

Refer to the Data Provided in Table 17 -Refer to Table 17