Jill's Utility from an Additional Dollar Increases More When She

question 79

Multiple Choice

Jill's utility from an additional dollar increases more when she has $400 than when she has $200.From this,we can conclude that Jill

• A) has an increasing marginal utility of wealth.
• B) has a decreasing marginal utility of wealth.
• C) is risk neutral.
• D) has a negative marginal utility of wealth.

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Definitions:

Operant Conditioning

A method of learning that employs rewards and punishments for behavior.

Desirable Stimulus

A stimulus that is appealing and rewarding to an individual, prompting positive reactions.

Behavior

The actions or reactions of an object or organism, usually in relation to the environment or stimuli.

Operant-Conditioning Principles

A set of theories in behavioral psychology that posit behavior is shaped by its consequences, including reinforcement and punishment.