Thea Committed a Traffic Violation That Resulted in an Accident

question 233

Multiple Choice

Thea committed a traffic violation that resulted in an accident. She learns first that the violation will result in a $500 fine; she then learns that she will have to pay another $500 for damage caused in the accident. According to prospect theory,

• A)she will suffer as much disutility from paying for the accident damage as she does from paying the fine.
• B)she will suffer less disutility from paying for the accident damage than from paying the fine.
• C)she will suffer more disutility from paying for the accident damage than from paying the fine.
• D)she will feel less disutility from paying $1,000 than she would receive positive utility from receiving $1,000.

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Definitions:

Cognitive Development

The process of growth and change in intellectual capabilities such as thinking, reasoning, and understanding.

Psychosocial Development

A concept in psychology that entails the growth and development of an individual's social and psychological aspects throughout their life.

Parallel Play

A development stage in children where they play alongside each other without interacting.

Stacking Rings

Toys or educational tools designed to help develop motor skills in children through the action of placing rings of different sizes in a specific sequence on a pole.