________ Applies When a Person Places More Value on Avoiding

question 7

Multiple Choice

________ applies when a person places more value on avoiding losses than attempting to realize gains.

• A) The availability heuristic
• B) Prospect theory
• C) The trait ascription bias
• D) The halo effect
• E) The availability cascade

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Definitions:

Paradox Of Thrift

The economic theory that suggests individual savings can lead to a decrease in aggregate demand, thus hindering economic growth.

Thrifty

Showing care and consideration in managing resources and finances to avoid waste.

Deficit Reduction Legislation

Laws enacted to reduce the size of the budget deficit by increasing revenue or decreasing government spending.

Excise Tax

A tax levied on certain goods, services, or transactions, often with the aim of reducing consumption of the taxed items.