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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Definitions:

Presence Of Other People

The perceptual or actual involvement of additional individuals in a situation, which can influence an individual's behavior or cognitive processes.

Performance

The act of carrying out or accomplishing an action, task, or function.

Social Loafing

A phenomenon wherein individuals exert less effort to achieve a goal when they work in a group than when they work alone.

Challenge Response

A reaction mechanism to a challenge in which an entity (person, group, or organization) mobilizes resources and adapts to overcome the obstacle.