Framing Effects in Prospect Theory Indicate That a Given Result

question 92

Multiple Choice

Framing effects in prospect theory indicate that a given result, such as "an investment return of 10 percent,"

• A)will be definitely viewed as a gain, because a loss would be a negative return.
• B)can be viewed as either a gain or a loss, depending on the context.
• C)will always increase the happiness of the investor.
• D)will change satisfaction to an equal but opposite degree as a negative 10 percent return.

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Definitions:

Evolutionary Forces

Elements such as natural selection, mutation, gene flow, and genetic drift that cause changes in the genetic composition of a population over time.

Beneficial Adjustments

Positive changes or modifications made to processes, policies, or behaviors that result in improved outcomes or efficiencies.

Alleles

Different versions or forms of a gene that arise by mutation and are found at the same place on a chromosome.

DNA Similarity

The degree to which the genetic sequence of two organisms is identical, reflecting their evolutionary closeness.