Diminishing Marginal Utility of Wealth Implies That the Utility Function

question 70

Multiple Choice

Diminishing marginal utility of wealth implies that the utility function is

• A)upward-sloping and has decreasing slope.
• B)upward-sloping and has increasing slope.
• C)downward-sloping and has decreasing slope.
• D)downward-sloping and has increasing slope.

---

Definitions:

Dog Food

Food specifically formulated and intended for consumption by dogs, containing nutrients necessary for their health and well-being.

Desensitization Therapy

A therapeutic technique used to reduce phobias and anxieties by gradually exposing the patient to the feared object or situation in a controlled manner.

Classical Conditioning

The approach of training through the habitual pairing of two stimuli; originally, the second stimulus induces the response, which later is induced by the first stimulus solely.

Extinction

In psychology, the diminishing of a conditioned response, typically when the reinforcement or stimulus that originally led to the response is removed.