One Aspect of Prospect Theory Is That People Tend to

question 83

Multiple Choice

One aspect of prospect theory is that people tend to

• A) be very risk averse to large gains.
• B) be very risk averse to losses.
• C) love losses more than gains.
• D) hate gains regardless of potential losses.

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Definitions:

Coccyx Bone

The small bone at the base of the human vertebral column, often referred to as the tailbone, which is a remnant of a vestigial tail.

Vestigial Character

A feature or organ that has diminished in size or usefulness in the course of evolution.

Common Ancestor

An ancestral organism from which two or more descendant species evolved.

Hominins

Members of the human lineage, including all species that have arisen since the split from our common ancestor with chimpanzees, characterized by bipedalism and larger brains.