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:

Petroleum

A liquid mixture of hydrocarbons present in certain rock strata, used for fuel and as a raw material in the chemical industry.

Natural Gas

is a fossil fuel consisting primarily of methane and other hydrocarbons, used as a source of energy for heating, cooking, and electricity generation, as well as a feedstock for chemical manufacture.

Oil Fuel

is a type of fuel derived from the refinement of crude oil used primarily for heating, transportation, and generating electricity.

Refined Product

A substance that has been processed and purified from its raw state to enhance its utility or value.