John Derives More Utility from Having $1,000 Than from Having

question 65

Multiple Choice

John derives more utility from having $1,000 than from having $100.From this,we can conclude that John

• A) is risk averse.
• B) is risk loving.
• C) is risk neutral.
• D) has a positive marginal utility of wealth.

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Definitions:

Partial

Relating to or being part of something but not whole; incomplete or limited in extent.

Sporadic Schedule

Refers to a random or unpredictable pattern of occurrences or events, often in the context of rewarding or reinforcing behaviors.

Schedule of Reinforcement

The plan for timing and frequency of reinforcement given to subjects in a conditioning experiment to establish or modify behavior.

Variable Ratio

A schedule of reinforcement where a response is reinforced after an unpredictable number of responses, promoting high and steady response rates.