When It Comes to Enacting Policy Changes, Loss Aversion Often

question 92

Multiple Choice

When it comes to enacting policy changes, loss aversion often leads to status quo bias because:

• A)people's estimates of their gains from the policy are often too large.
• B)people's estimate of their losses from the policy are often too small.
• C)the support from those who stand to gain from the policy often overwhelms the resistance from those who stand to lose.
• D)the resistance from those who stand to lose from the policy often overwhelms the support from those who stand to gain.

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Definitions:

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