Final answer:
The dominance principle related to the expected utility principle is referred to as EU 1. It implies selecting the option that consistently offers a better outcome across all possible scenarios.
Step-by-step explanation:
The axiom related to the expected utility principle known as the dominance principle is referred to as EU 1. This principle relates to decision-making in situations of uncertainty. According to EU 1, if one option always leads to a better outcome than another under every possible scenario, the first option dominates and should be chosen. It is grounded in the larger context of utility theory, which assesses decisions based on the predicted satisfaction (or utility) they will provide. This aligns with the economist's view that people choose goods and services due to the utility these items deliver, as described in the context of the law of diminishing marginal utility. Simply put, items are chosen based on the expected utility with the recognition that as a person consumes more of a good, the added satisfaction from each additional unit declines.