Figure 14-4

question 324

Multiple Choice

Figure 14-4. The figure shows a utility function for Dexter.
-Refer to Figure 14-4. Suppose Dexter begins with $1,300 in wealth. Starting from there,

• A)the pain of losing $500 of his wealth would equal the pleasure of adding $500 to his wealth.
• B)the pain of losing $500 of his wealth would exceed the pleasure of adding $500 to his wealth.
• C)the pleasure of adding $500 to his wealth would exceed the pain of losing $500 of his wealth.
• D)This cannot be determined from the graph.

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Definitions:

Discouraged Workers

Individuals who are not actively seeking employment due to believing there are no jobs available for them.

Marginally Attached Workers

Individuals not in the labor force who want and are available to work but have not searched for a job in the past 4 weeks, hence are not counted as unemployed in labor force statistics.

Economic Reasons

Factors or motivations grounded in economics that explain certain behaviors, decisions, or trends.