When We Are Being Sensitive to Negative Outcomes and Avoid

question 11

Multiple Choice

When we are being sensitive to negative outcomes and avoid things that upset us, we are ___________ focused.

• A) prevention
• B) ideal
• C) ought
• D) promotion

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Definitions:

Utility Function

A mathematical representation of how a consumer ranks different bundles of goods according to their level of satisfaction or utility.

Risk Averse

A description of an investor or decision-maker who prefers to avoid risk, choosing options with potentially lower returns but lesser risks.

Fire Insurance

A type of property insurance that covers damage and losses caused by fire, protecting homeowners and businesses.

Utility Function

A mathematical representation that ranks alternatives according to their utility to an individual, reflecting their preferences or satisfaction from consuming goods or services.