Utility-Maximization Hypothesis Features and Testability

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What type of feedback mechanism is the amplification of forest fires?

Positive feedback

In the context of feedback mechanisms, what happens when body temperature rises in humans?

Sweat glands release moisture

What effect does the amplification of forest fires have on nearby vegetation?

Vegetation dries out and becomes more flammable

Which term best describes the purpose of a negative feedback mechanism?

Stabilizing system behavior

Which of the following statements is true about a negative feedback mechanism?

It seeks to counteract changes in the system

Explore the central features of the utility-maximization hypothesis, which include individuals aiming to maximize their overall satisfaction or 'utility' when making decisions. Understand how preferences are assumed to be transitive and complete for rational decision-making. Determine if this hypothesis is empirically testable or falsifiable.

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