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Give an example of classical conditioning, listing the correct terminology for the elements in the process.
Convex Preferences
Preferences that express a consumer's desire for diversified bundles of goods over extreme bundles, depicted graphically as convex indifference curves.
Edgeworth Box
A diagram representing various distributions of resources, used to examine issues of allocation efficiency in economics.
Indifference Curves
Graphical representations showing combinations of two goods that give a consumer equal levels of satisfaction, indicating preferences.
Pareto Optimal
A condition of resource allocation in which it is impossible to make any one individual better off without making someone else worse off, signifying an efficient distribution of resources.
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