People Often Make Decisions on the Basis of Mental Accounting

question 34

Multiple Choice

People often make decisions on the basis of mental accounting. One facet of this accounting is making a decision based on the way a problem was posed. This is called ________.

• A) framing
• B) the sum-cost fallacy
• C) loss aversion
• D) positioning

---

Definitions:

Gender

The range of characteristics pertaining to, and differentiating between, masculinity and femininity.

Sex

A biological category based on reproductive organs and genetic makeup, commonly classified as male or female.

Psychoanalytic

Pertaining to a theory of psychology founded by Sigmund Freud, focusing on the role of unconscious motivations and early childhood experiences in determining behavior and personality.

Biological

Pertaining to the science of life or living organisms, their structure, function, growth, origin, evolution, and distribution.