1. 

   Robert Very Active Member

   Diminishing marginal utility of income implies that individuals are:
   A risk lovers.
   B risk averse.
   C risk seekers.
   D risk neutral.
   
   May I know why the answer is B?

    

   Robert, Jul 9, 2020

   #1
2. 

   Richie Holway ActEd Tutor Staff Member

   Hi Pxliang,
   
   There is a section called 'Diminishing marginal utility of income and attitudes towards risk taking' on page 131 of the textbook. Let me know if any of this doesn't make sense.
   
   Thanks,
   Richie

    

   Richie Holway, Jul 14, 2020

   #2

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