George Is Considering Buying Shares of Intel

question 156

Multiple Choice

George is considering buying shares of Intel. If the company does well, he will gain $100, but if the company does poorly, he will lose $100. George is risk averse, so for George the magnitude of the pain of losing $100 will ________ the pleasure of gaining $100.

• A) equal
• B) be less than
• C) be greater than
• D) None of the above answers are correct because we cannot compare the pain of losing to the pleasure of gaining.

---

Definitions:

Psychological Distress

Emotional suffering or discomfort often characterized by symptoms of depression, anxiety, or stress.

Physical Health

The condition of a person's body, including the absence of disease, fitness level, and overall bodily function.

Social Identity

An individual's sense of who they are based on their group memberships, such as nationality, religion, or social class.

Self-concept

An individual's perception of themselves, including beliefs about one’s personality, physical characteristics, abilities, values, goals, and roles.