According to Prospect Theory

question 21

Multiple Choice

According to prospect theory,

• A) people are concerned with wealth levels only.
• B) people are concerned with changes in wealth levels only.
• C) people never use a reference level when making their decisions.
• D) everybody is risk-neutral.

---

Definitions:

Childlike

Exhibiting qualities traditionally associated with children, such as innocence, naivety, and a sense of wonder.

Disorganized

Describes a lack of structure or order, often leading to difficulty in finding things or focusing on tasks.

Catatonic

A psychomotor disturbance characterized by abnormal movement patterns, including rigidity, immobility, or excessive, purposeless movement.

Undifferentiated

Lacking distinctive features or not specialized in function.