If a consumer definitely prefers a payment of INR 50 for sure to a lottery which promises rewards of INR 100 or INR 0 with probabilities of 1/2 each, then we can say that the consumer is:

Question

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A risk-averse individual prefers a certain outcome (INR 50) over a risky one (the lottery). This indicates that the consumer dislikes risk and is willing to accept a lower, but certain, outcome instead of facing a risky one. Hence, the correct answer is (b).

Answer

<div>Risk lover</div>

Answer

Risk averse

Answer

Risk neutral

Answer

<div>Satisficer</div>

If a consumer definitely prefers a payment of INR 50 for sure to a lottery which promises rewards of INR 100 or INR 0 with probabilities of 1/2 each, then we can say that the consumer is:

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The Correct Option is B

Solution and Explanation

Questions Asked in CUET PG exam