David's Utility Function If David's Current Wealth Is $61,000,then

question 49

Multiple Choice

David's Utility Function

If David's current wealth is $61,000,then

• A)his gain in utility from gaining $1,000 is less than his loss in utility from losing $1,000.David is risk averse.
• B)his gain in utility from gaining $1,000 is less than his loss in utility from losing $1,000.David is not risk averse.
• C)his gain in utility from gaining $1,000 is greater than his loss in utility from losing $1,000.David is risk averse.
• D)his gain in utility from gaining $1,000 is greater than his loss in utility from losing $1,000.David is not risk averse.

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Definitions:

Reinforcement

A concept in behaviorism that involves increasing the likelihood of a behavior's occurrence through the administration of rewards or punishments.

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.