True or False and justify briefly.

1) Household members tend to have different preferences, but empirical evidence shows that overall, most households are Pareto efficient. - False

2) For risk averse individuals, having a greater ability to do consumption smoothing means they are more likely to choose profitable but risky activities. - True

Most tutors said 1) T, 2) F and I got wrong. Please justify that 1) F, 2) T, as stated above.