The curve for the _______ will show a rapid increase in utility for initial amounts of money followed by a gradual levelling off for increasing dollar amounts.
A) profit seeker
B) risk taker
C) risk neutral
D) risk averter

Question

The curve for the  _______ will show a rapid increase in utility for initial amounts of money followed by a gradual levelling off for increasing dollar amounts.
A) profit seeker
B) risk taker
C) risk neutral
D) risk averter

Quizplus · Accepted Answer

The statement is describing the utility curve for someone who is risk neutral. Risk seekers (A) would show a continuous upward slope on their utility curve, while risk averters (D) would show a slower increase in utility for initial amounts of money followed by a more rapid levelling off as the dollar amounts increase.

The Curve for the _______ Will Show a Rapid