The person has diminishing marginal utility of income and prefers a certain income to a gamble…

The person has diminishing marginal utility of income and prefers a certain income to a gamble with the same expected income
OB The person has increasing marginal utility of income and prefers an uncertain income to a certain income.
OC The person has increasing marginal utility of income and prefers a certain income to a gamble with the same expected income.
OD The person has diminishing marginal utility of income and prefers an uncertain income to a certain income.
Why are some people kely to be risk averse while others are risk lovers?
OA A person’s risk aversion (or risk loving) depends on the nature of the risk involved, but it is independent of income
OB A person’s risk aversion (or risk loving) depends only on the person’s income. At low levels of income people are risk averse, but at high income they become risk loving OC A person’s risk aversion (or risk loving) depends on the nature of the risk involved and on the person’s income
OD A person’s risk aversion (or risk loving) depends only on the person’s income. At low levels of income people are risk loving, but at high income they become risk averse.

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