Given the Choice Between a Sure-Thing Option and a Gamble

question 12

Multiple Choice

Given the choice between a sure-thing option and a gamble option with the same expected payoff, a____________ person will choose the sure thing.

• A)risk averse
• B)risk loving
• C)risk neutral
• D)risk enjoying
• E)none of the above

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Definitions:

Moral Component

This refers to the aspects of decision-making that involve ethics, values, and principles of right and wrong.

Mediating Agent

An entity or factor that intervenes or facilitates a process or interaction between other entities or phenomena.

Biological Impulses

Innate and instinctual drives that determine behavior, such as hunger, thirst, and the need for sleep.

Preconscious

A term in psychoanalytic theory referring to the part of the mind that contains thoughts, memories, and feelings that are not currently in conscious awareness but can be accessed.