An Important Finding of Prospect Theory Suggests That Individuals

question 82

Multiple Choice

An important finding of prospect theory suggests that individuals

• A) are more willing to take risks to achieve a gain than to avoid a loss.
• B) are unable to make a rational decision in a moment of crisis.
• C) never waver from the way cost-benefit decisions are made.
• D) are more willing to take risks to avoid a loss than to achieve a gain.

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Definitions:

Atm

A unit of pressure defined as being equal to the pressure exerted by the Earth's atmosphere at sea level; approximately 101.325 kPa.

Volume

The amount of space that a substance or object occupies, or that is enclosed within a container.

°C

a unit of temperature on the Celsius scale, a measure relative to 0°C for the freezing point and 100°C for the boiling point of water at sea level.

Atm

An abbreviation for atmosphere, a unit of pressure equal to the pressure exerted by the Earth's atmosphere at sea level.