If one's indifference curves in a state space graph are convex to the origin, the individual is:
A)risk averse.
B)risk inclined.
C)undecided about their attitude to risk.
D)risk neutral.

Name: If one's indifference curves in a state space graph are convex to the origin, the individual is: A)risk averse. B)risk inclined. C)undecided about their attitude to risk. D)risk neutral.
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Question

Quizplus · Accepted Answer

Convex indifference curves indicate diminishing marginal utility of wealth, meaning the individual is risk averse.

If One's Indifference Curves in a State Space Graph Are