One Difficulty with the Two-Process Theory of Avoidance Is That

question 36

Multiple Choice

One difficulty with the two-process theory of avoidance is that:

• A) avoidance responses are difficult to extinguish.
• B) avoidance responses extinguish very quickly.
• C) escape responses are difficult to extinguish.
• D) escape responses extinguish very quickly.

---

Definitions:

Moral Hazard

A situation where one party takes excessive risks because another party bears the cost of those risks, often seen in insurance and finance.

Adverse Selection

A situation in finance and insurance where there is an asymmetric information problem causing bad risks to be more likely to be selected.

Moral Hazard

A situation in economics where one party can take risks because they do not have to bear the full consequences of their actions.

Limited Supervision

This term describes a work environment where employees are given the freedom to complete tasks and make decisions with minimal oversight from managers or supervisors.