Prospect Theory Assumes That People Are More Likely to Take

question 30

Multiple Choice

Prospect theory assumes that people are more likely to take a risk:

• A)to achieve gains.
• B)to avoid losses.
• C)both to achieve gains and to avoid losses.
• D)when one option is certain.

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Definitions:

Wundt

Wilhelm Wundt, often considered the father of experimental psychology, known for founding the first psychology laboratory.

Titchener

A psychologist known for founding structuralism and advocating the method of introspection to identify the basic elements of consciousness.

Cognitive Processes

Mental activities involved in acquiring, storing, retrieving, and using knowledge, including perception, memory, reasoning, and language.

Information Processing

This is the mechanism through which human beings intake, store, and retrieve information, akin to how computers process data.