Health Economics
Health Economics
14th Edition
ISBN: 9781137029966
Author: Jay Bhattacharya
Publisher: SPRINGER NATURE CUSTOMER SERVICE
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Chapter 7, Problem 1E
To determine

Determine whether the given statement is true or false. 

Expert Solution & Answer
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Explanation of Solution

According to the simple model, the income utility curve is determined by an individual’s taste for risk. If an individual exhibits the declining marginal utility of income, then the income–utility curve will become concave and will be risk average. Thus, the statement is true.

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