If Cara's Utility Falls More by Losing $600 Than It

question 106

Multiple Choice

If Cara's utility falls more by losing $600 than it rises by gaining $600,she has

• A)increasing marginal utility of wealth and is risk averse.
• B)increasing marginal utility of wealth but is not risk averse.
• C)decreasing marginal utility of wealth and is risk averse.
• D)decreasing marginal utility of wealth but is not risk averse.

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Definitions:

Punishment

A consequence that decreases the likelihood of a behavior being repeated in the future, often used in behavior management strategies.

Shaping

A process in behavioral psychology where successive approximations of a behavior are reinforced to teach a new behavior.

Primary Reinforcers

These are naturally reinforcing stimuli, such as food or water, that satisfy biological needs and do not require learning to become effective.

Secondary Reinforcers

Stimuli that do not naturally provide reinforcement but have acquired reinforcing qualities through being associated with primary reinforcers.