Loss Aversion Is

question 37

Multiple Choice

Loss aversion is:

• A)a general tendency to prefer certain outcomes over uncertain ones.
• B)a general tendency to put more effort into achieving gains than avoiding losses.
• C)a general tendency to put more effort into avoiding losses than achieving gains.
• D)a spectrum of tolerance for risky situations.

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Definitions:

Latitude of Acceptance

The range of ideas and opinions an individual finds acceptable or reasonable.

Ingroup

A social group to which a person psychologically identifies as being a member, often leading to favoritism towards ingroup members and prejudice against outgroup members.

Outgroup

A social group toward which an individual feels opposition, rivalry, or hostility.

Evolutionary Explanation

A theory that attributes the development and behaviors of organisms to evolutionary factors such as natural selection.