Consider the Influence of Consequences on Behaviour

question 64

Multiple Choice

Consider the influence of consequences on behaviour.Which alternative correctly describes the consequences that increase the frequency of behaviour,and decrease it on the other?

• A) Both positive and negative reinforcement increase the frequency of behaviour. Punishment decreases it.
• B) Positive reinforcement increases the frequency of behaviour. Punishment decreases it.
• C) Positive reinforcement increases the frequency of behaviour. Both negative reinforcement and punishment decrease it.
• D) Positive reinforcement increases the frequency of behaviour. Negative reinforcement decreases it.

Understand utility functions and how they guide investor choices among assets with varying expected returns and risks.

Interpret mean-standard deviation graphs and their significance in portfolio selection and investor preference.

Analyze and calculate optimal investment choices based on specific utility functions.

Compare and contrast investments using the mean-variance criterion.

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Definitions:

Economic Profit

The contrast between the aggregate income and complete costs, both visible and unseen, of a company.

Market Price

The current price at which an asset or service can be bought or sold in a competitive marketplace.

Cost Curves

Graphical representations that show how the costs of production change in response to different levels of output.

Market Price

The current market price for transactions involving an asset or service.