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:

Priming Aggressive Thoughts

A process by which exposure to certain stimuli can increase the likelihood of aggressive responses in individuals.

Mere Exposure Effect

The Mere Exposure Effect is a psychological phenomenon by which people tend to develop a preference for things merely because they are familiar with them.

Alphabetical Order

A system of sorting according to the sequence of letters in the alphabet.

Self-Fulfilling Prophecy

A belief or expectation that directly or indirectly causes itself to become true, due to positive feedback between belief and behavior.