Kahneman and Tversky Suggest That the Way People Go About

question 26

Multiple Choice

Kahneman and Tversky suggest that the way people go about assigning values to utilities of prizes is by

• A) defiining for themselves a status quo outcome only
• B) judging all outcomes other than the status quo as either gains or losses from the status quo only
• C) defiining for themselves a status quo outcome and judging all outcomes other than the status quo as either gains or losses from the status quo

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Definitions:

State

A political entity with a defined territory, government, and the capacity to enter into relations with other states.

Northwest Territory

Territory established by the Northwest Ordinance of 1787, covering what would become the states of Ohio, Indiana, Illinois, Michigan, Wisconsin, and part of Minnesota.

Slavery

Slavery is a system in which individuals are owned by others, deprived of personal freedom, and forced to perform labor or services.

Plantation Farming

An agricultural production system characterized by large-scale monoculture farming, often historically reliant on slave or cheap labor.