Figure 14-4

question 164

Multiple Choice

Figure 14-4. The figure shows a utility function for Dexter.
-Refer to Figure 14-4. In what way(s) does the graph differ from the usual case?

• A)The utility function shown here is upward-sloping, whereas in the usual case the utility function is downward-sloping.
• B)The utility function shown here is bowed downward (convex), whereas in the usual case the utility function is bowed upward (concave).
• C)On the graph shown here, wealth is measured along the horizontal axis, whereas in the usual case saving is measured along the horizontal axis.
• D)On the graph shown here, utility is measured along the vertical axis, whereas in the usual case satisfaction is measured along the vertical axis.

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Definitions:

Policy

A course or principle of action adopted or proposed by an organization or individual.

Rules

Explicit or understood regulations or principles governing conduct within a specific activity or sphere.

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An individual's own encounters or events, which shape their perspective and understanding of the world.