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:

Transference

A phenomenon in psychoanalysis where patients project feelings about figures from their past onto their therapist.

Psychoanalysis

A therapeutic technique and theory of personality developed by Sigmund Freud, focusing on unconscious motivations and conflicts.

Deceased Brother

A sibling who has passed away.

Unconsciously Motivated

Actions or thoughts stemming from parts of the mind that are beyond conscious awareness, yet influence behavior or emotional responses.