Tina Has Negative Affectivity

question 17

Multiple Choice

Tina has negative affectivity. Faced with an ordinary problem, she is likely to:

• A) shrug it off.
• B) magnify it and create stress for herself.
• C) count to ten backwards.
• D) have a heart attack on the spot.

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Definitions:

Risk Aversion

Risk aversion is a preference for avoiding loss over making a gain, characterizing individuals or entities that prefer certainty to uncertainty in investment decisions.

Equilibrium

An equilibrium state in the market where demand equals supply, resulting in steady prices.

Independent Events

In probability theory, events that do not affect the occurrence of one another.

Insurance Premiums

Payments made to an insurance company in exchange for coverage, typically paid on a monthly or annual basis.