Behavioral Economists Have Not Discovered Which of the Following Things

question 60

Multiple Choice

Behavioral economists have not discovered which of the following things about people's reaction to losses?

• A)People judge losses in relative terms; i.e., relative to the status quo.
• B)People experience increasing marginal disutility from losses.
• C)People would feel the loss of $1,000 more intensely than they would feel the gain of $1,000.
• D)When people lose successive equal amounts, the initial losses are more painful than later ones.

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Definitions:

Nicotine

A potent chemical found in tobacco plants that acts as a stimulant in small doses but can be harmful, leading to addiction and various health issues.

Stimulant

An agent that elevates activity in the body's physiological or nervous functions.

REM Behavior Disorder

A sleep disorder characterized by the physical acting out of dreams during the REM (Rapid Eye Movement) stage of sleep, due to a failure of the brain mechanisms that usually inhibit body movements.

Stage 4 Sleep

A stage of deep sleep characterized by non-rapid eye movement (NREM), important for physical restoration.