The risk seeker's curve represents the utility of one who enjoys taking risks.Therefore,the slope of the utility curve becomes _______ for large dollar amounts.
A) larger
B) stable
C) smaller
D) uncertain

Question

The risk seeker's curve represents the utility of one who enjoys taking risks.Therefore,the slope of the utility curve becomes  _______ for large dollar amounts.
A) larger
B) stable
C) smaller
D) uncertain

Quizplus · Accepted Answer

A risk seeker is someone who enjoys taking risks, so as the dollar amount increases, their desire to take risks also increases. This means that the slope of their utility curve becomes larger for larger dollar amounts.

The Risk Seeker's Curve Represents the Utility of One Who