Risk Is a Problem Faced

question 121

Multiple Choice

Risk is a problem faced

• A) only in market systems.
• B) only in command systems.
• C) in both market systems and command systems.
• D) in neither market systems nor command systems, only in laissez-faire capitalism.

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Definitions:

Behavioral Economics

A field of economics that studies how psychological, cognitive, emotional, cultural, and social factors affect economic decisions of individuals and institutions.

Loss Aversion

A cognitive bias where individuals fear losses more than they value equivalent gains.

Company Retirement

Often related to the benefits or pension schemes planned for employees after they retire from a company, differing from mandatory retirement policies.

Savings Programs

Financial plans or accounts that encourage saving by offering interest or other benefits.