Which of the Following Facts Is Not a Basis for Prospect

question 182

Multiple Choice

Which of the following facts is not a basis for prospect theory in behavioral economics?

• A)People evaluate gains and losses in relation to the status quo, not in absolute terms.
• B)People feel losses much more intensely than they feel gains.
• C)People experience diminishing marginal disutility for losses.
• D)People do not experience diminishing marginal utility for gains.

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