Table: Utility for Terri and Mary Income Terri's Marginal Utility from Income Maty's Marginal Utility from Income $0 $100 14 11 $200 11 7 $300 6 6 $400 4 5 $500 2 4 Reference: Ref 20-3 Table: Utility for Terri and Mary (Table: Utility for Terri and Mary) Use Table: Utility for Terri and Mary. Each has an income of $300. _____ is more risk-averse because _____ has a _____ drop in total utility if income were to fall by $100. Select one: a. Terri; Terri; larger b. Terri; Mary; larger c. Mary; Terri; smaller d. Mary; Mary; larger
Table: Utility for Terri and Mary Income Terri's Marginal Utility from Income Maty's Marginal Utility from Income $0 $100 14 11 $200 11 7 $300 6 6 $400 4 5 $500 2 4 Reference: Ref 20-3 Table: Utility for Terri and Mary (Table: Utility for Terri and Mary) Use Table: Utility for Terri and Mary. Each has an income of $300. _____ is more risk-averse because _____ has a _____ drop in total utility if income were to fall by $100. Select one: a. Terri; Terri; larger b. Terri; Mary; larger c. Mary; Terri; smaller d. Mary; Mary; larger
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Table: Utility for Terri and Mary
| Income | Terri's Marginal Utility from Income |
Maty's Marginal Utility from Income |
|---|---|---|
| $0 | ||
| $100 | 14 | 11 |
| $200 | 11 | 7 |
| $300 | 6 | 6 |
| $400 | 4 | 5 |
| $500 | 2 | 4 |
Reference: Ref 20-3 Table: Utility for Terri and Mary
(Table: Utility for Terri and Mary) Use Table: Utility for Terri and Mary. Each has an income of $300. _____ is more risk-averse because _____ has a _____ drop in total utility if income were to fall by $100.
Select one:
a. Terri; Terri; larger
b. Terri; Mary; larger
c. Mary; Terri; smaller
d. Mary; Mary; larger
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