If a Person Had Increasing Marginal Utility, Then the Decline

question 145

True/False

If a person had increasing marginal utility, then the decline in utility from losing $1,000 would be greater than the increase in utility from gaining $1,000.

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Definitions:

Intrinsic Motivation

The drive to engage in activities for their own sake because they are interesting and satisfying in and of themselves, not for some separable consequence.

Extrinsic Motivation

The drive to perform actions due to external rewards or pressures rather than for intrinsic satisfaction.

Sensation-Seeking

A trait describing the tendency to seek out novel, varied, complex, and intense sensations and experiences, and the willingness to take physical, social, legal, and financial risks for such experiences.

Extrinsic Motivation

Motivation driven by external rewards such as money, fame, grades, and praise.