An Individual with a Constant Marginal Utility of Income Will

question 21

Multiple Choice

An individual with a constant marginal utility of income will be:

• A) risk averse.
• B) risk neutral.
• C) risk loving.
• D) insufficient information for a decision

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Definitions:

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers an unconditioned response without any prior learning.

Conditioned Stimulus

A stimulus that was once neutral but, after being paired with the unconditioned stimulus, gradually induces a conditioned response.

Aplysia

A genus of sea slugs that are often used in neurological research due to their simple, large nerve cells.

Squirt

To eject liquid in a thin, fast stream through a narrow opening.