Loss aversion refers to the idea that people ________. generally tend to avoid risky activities are more prone to making losses than gains in day-to-day transactions psychologically weight a loss more heavily than they psychologically weight a gain

Loss aversion refers to the idea that people ________. generally tend to avoid risky activities are more prone to making losses than gains in day-to-day transactions psychologically weight a loss more heavily than they psychologically weight a gain

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter32: Building Theories To Explain Every Day Life: From Observations To Questions To Theories To Predictions

Section: Chapter Questions

Problem 5QP

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Question

Loss aversion refers to the idea that people ________.

generally tend to avoid risky activities
are more prone to making losses than gains in day-to-day transactions
psychologically weight a loss more heavily than they psychologically weight a gain
are unwilling to undertake expenditures that reduce the probability of future losses

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