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:

Military Aircraft

Aircrafts designed for use in warfare, including fighters, bombers, and transport planes.

GDP Deflator

A gauge for assessing the price rates of all new, locally manufactured, end goods and services in a country, applied to recalibrate nominal GDP to real GDP.

Real GDP

The measure of a country's economic output adjusted for price changes (inflation or deflation), providing a more accurate reflection of an economy's size and how it’s growing over time.

GDP Deflator

A measure of the level of prices of all new, domestically produced, final goods and services in an economy, used to convert nominal GDP into real GDP.