Which View States That People Choose to Take on Risks

question 386

Multiple Choice

Which view states that people choose to take on risks when evaluating potential losses and avoid risks when evaluating potential gains?

• A)frequency format hypothesis
• B)prospect theory
• C)means-ends analysis
• D)belief bias

Appreciate the complexity of consumer behavior, including brand loyalty and its economic explanations.

Understand precommitments as a strategy to address time inconsistency and self-control problems.

Recognize the challenges of myopia in financial planning and personal economic decisions.

Analyze the role of behavioral economics in policy design, particularly in nudging consumer behavior.

---

Definitions:

Barack Obama

The 44th President of the United States (2009–2017), notable for being the first African American to hold the office and his significant healthcare reform, the Affordable Care Act.

Hillary Clinton

An American politician, diplomat, lawyer, writer, and public speaker who served as the 67th United States Secretary of State and as a senator from New York, among other roles.

Spring 2008

Spring 2008 is a time reference, possibly pointing to important events or trends during that period, such as economic, political, or social developments.

Debt-Ceiling Standoff

A political situation in which the legislature reaches an impasse on the raising of the government's debt limit, potentially leading to a default on government obligations.