Figure 27-4

question 99

Multiple Choice

Figure 27-4.The figure shows a utility function for Alex.
-Refer to Figure 27-4.From the appearance of Alex's utility function,we know that

• A)the pain that Alex would experience if he lost $500 of his wealth would exceed the pleasure that he would experience if he added $500 to his wealth.
• B)the pleasure that Alex would experience if he added $500 to his wealth would exceed the pain that he would experience if he lost $500 of his wealth.
• C)the property of increasing utility does not apply to Alex.
• D)the property of diminishing marginal utility does not apply to Alex.

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Definitions:

Natural Justice

Procedural fairness in decision-making.

Business Operations

The ongoing, routine activities involved in the running of a business for the purpose of producing value for the stakeholders.

Administrative Laws

A branch of public law that regulates the activities of administrative agencies of government, including rulemaking, adjudication, or the enforcement of specific regulatory agendas.

Criminal Laws

Laws that prohibit certain behaviors and actions considered harmful to society, and outline punishments for breaches of these laws.