Utility Theory Assumes That Marginal Utility

question 43

Multiple Choice

Utility theory assumes that marginal utility:

• A) increases as an individual consumes more of a product.
• B) decreases as an individual consumes more of a product.
• C) is zero as long as the individual derives utility from the product.
• D) is constant as long as the individual derives utility from the product.

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Definitions:

Frame-of-Reference Training

Training designed to standardize the evaluation criteria and rating scales used by evaluators, typically in the context of performance appraisal.

Structured Interviews

An interview method where all candidates are asked the same predetermined questions in the same order to ensure fairness and consistency.

Morning Bias

A tendency to show more favorable reactions or evaluations in the morning due to biological or psychological factors.

Less Conscientious

relates to individuals who tend to be less careful, diligent, and organized in their personal or professional life.