Prospect Theory Is Based on Behavioral Economists' Understanding of How

question 219

Multiple Choice

Prospect theory is based on behavioral economists' understanding of how people

• A)react to good things (or gains)and bad (or losses).
• B)make predictions about their future income.
• C)search for job prospects or business prospects.
• D)behave under stressful conditions.

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Definitions:

Extinction

In behavioral psychology, the process through which a conditioned response decreases or disappears after repeated exposure to the conditioned stimulus without the unconditioned stimulus.

Fixed-Ratio

A reinforcement schedule in which a response is rewarded after a predetermined number of responses have been made.

Square Footage

A measure of area used primarily in the United States for calculating the size of a space, equal to the area of a square with sides of one foot.

Lawn Care

The maintenance and upkeep of grassy areas, typically involving mowing, fertilization, weed control, and aeration to promote healthy turf.