For Most Practical Matters, Economists Assume That

question 8

Multiple Choice

For most practical matters, economists assume that

• A) individuals are risk neutral.
• B) individuals are risk lovers.
• C) individuals are risk averse.
• D) most individuals are risk lovers.
• E) most individuals are risk neutral.

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Definitions:

Operant Conditioning

Operant conditioning is a learning process through which the strength of a behavior is modified by reinforcement or punishment.

Classical Conditioning

Pavlovian Conditioning, an associative learning process through which an animal or human learns to link two stimuli, with one stimulus coming to evoke a response originally evoked by the other.

Animal's Behavior

The actions or reactions of animals in response to external or internal stimuli, often studied to understand instinctual and learned behaviors.

Reinforcer

Any stimulus that strengthens or increases the probability of a specific response or behavior.