The principle of diminishing sensitivity holds that:
A) the marginal impact of enlarging a change from the status quo declines with the size of the change.
B) the marginal impact of enlarging a change from the status quo increases with the size of the change.
C) the total impact of enlarging a change from the status quo declines with the size of the change.
D) the total impact of enlarging a change from the status quo increases with the size of the change.

Question

Quizplus · Accepted Answer

The principle of diminishing sensitivity states that as the level of a given stimulus increases, the marginal impact that an incremental increase in the intensity of that stimulus has on a person's subjective response declines. In other words, the effect of a change declines as it becomes larger. This means that the marginal sensitivity of an individual to changes in a stimulus decreases as the stimulus becomes more intense. Therefore, the correct choice is A, which indicates that the marginal impact of enlarging a change from the status quo declines with the size of the change.

The Principle of Diminishing Sensitivity Holds That