Figure 19-1.The Figure Shows a Utility Function

question 18

Multiple Choice

Figure 19-1.The figure shows a utility function.
-Refer to Figure 19-1.For the person to whom this utility function applies,

• A) the more wealth she has,the less utility she gets from an additional dollar of wealth.
• B) the more wealth she has,the more utility she gets from an additional dollar of wealth.
• C) her level of satisfaction will be enhanced more by an increase in wealth from $600 to $800 than it would be by an increase in wealth from $400 to $600.
• D) her level of satisfaction will be enhanced equally by an increase in wealth from $600 to $800 or by an increase in wealth from $400 to $600.

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Definitions:

Neuroticism

A personality trait characterized by a tendency towards anxiety, moodiness, worry, and jealousy.

Big Five Factor

The Big Five Factor model outlines five broad dimensions of personality traits seen to describe the human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Agreeableness

A personality trait characterized by warmth, friendliness, and a tendency towards cooperative and empathetic behavior.

Political Office

A position of authority or command in the government held by an individual who has been elected or appointed to it.