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:

Environment

The surroundings or conditions in which a person, animal, or plant lives or operates, including both natural and human-made aspects.

Locus

in psychological terms, often refers to locus of control, which is the degree to which individuals believe they have control over the outcome of events in their lives.

Chromosome

A structure found in the nucleus of cells that contains genetic information in the form of DNA.

Specific Position

A particular or distinct place, situation, or status that an individual or object occupies.