Question 698 utility, risk aversion, utility function
Mr Blue, Miss Red and Mrs Green are people with different utility functions. Which of the statements about the 3 utility functions is NOT correct?
(a) Neither Miss Red nor Mrs Green would appear rational to an economist.
(b) Mrs Green is satiated when she has $25 of wealth. That is her bliss point.
(c) Mrs Green is risk loving when she has between zero and $25 of wealth, same as Mr Blue.
(d) Mrs Green is risk averse when she has between $25 and $50 of wealth.
(e) Mrs Green is risk loving when she has between $50 and $100 of wealth, same as Mr Blue.