Loss aversion refers to the idea that:
A) people generally tend to avoid risky activities.
B) people are more prone to making losses than gains in day-to-day transactions.
C) people psychologically weight a loss more heavily than they psychologically weight a gain.
D) people are unwilling to undertake expenditures that reduce the probability of future losses.
C
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As output moves from point a to point b to point c along the PPF in the above figure, the opportunity cost of one more unit of good X
A) rises. The opportunity cost of one more unit of good Y also rises. B) rises. The opportunity cost of one more unit of good Y falls. C) falls. The opportunity cost of one more unit of good Y rises. D) falls. The opportunity cost of one more unit of good Y also falls.
“Government-set prices undermine the rationing function of competitive prices.” Explain carefully in terms of both price ceilings and price floors
Please provide the best answer for the statement.