Consider two upward sloping income-utility curves with income on the horizontal axis. The steeper curve represents risk preferences that are more:
A. risk averse.
B. risk loving.
C. loss averting.
D. We cannot answer this question without more information about the shapes of the curves.
Answer:D
Consider two upward sloping income-utility curves with income on the horizontal axis. The steeper curve represents risk preferences that are more:
A. risk averse. B. risk loving. C. loss averting. D. We cannot answer this question without more information about the shapes of the curves.