​When Consequences Are Measured on a Scale That Reflects a Decision

question 83

Multiple Choice

​When consequences are measured on a scale that reflects a decision maker's attitude toward profit, loss, and risk, payoffs are replaced by

• A) ​utility values.
• B) ​multicriteria measures.
• C) ​sample information.
• D) ​opportunity loss.

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Definitions:

Diminishing Marginal Utility

The principle that as a person consumes more of a product, there is a decline in the additional satisfaction or utility that person derives from consuming one more unit of the product.

Equality-Efficiency Trade-Off

This concept deals with the balance or compromise between achieving a more equitable distribution of resources and maximizing economic efficiency.

Income Equality

A situation in which earnings are distributed evenly across members of a society, reducing income disparities.

Growing Income Inequality

The increasing gap in the distribution of income and wealth among individuals or households within a community or country.