What Is the Best Definition of Myopic Loss Aversion

question 69

Multiple Choice

What is the best definition of myopic loss aversion?

• A) The tendency to focus on avoiding short-term losses, even at the expense of long-term gains.
• B) The tendency to avoid making a decision because you fear that the decision would have been less than optimal.
• C) The tendency to consider something that you own to be worth more than it would be if you did not own it.
• D) Confusion between real buying power and nominal buying power.
• E) The reliance on instinct instead of analysis in making decisions.

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Definitions:

Traits

Enduring dimensions of personality characteristics along which people differ.

Psychological Moratorium

A period of development in adolescence during which an individual delays making definitive decisions about identities or directions in life, exploring various alternatives instead.

Crisis

A crucial or decisive point or situation, often a difficult or unstable time or state of affairs in which a decisive change is impending.

Ideology

Is a system of ideas, beliefs, values, and ideals that reflects the social needs and aspirations of an individual, group, class, or culture.