Loss aversion occurs when:
A. the consumer's valuation of an outcome is less sensitive, per dollar, to small losses than to small gains.
B. the consumer's valuation of an outcome is more sensitive, per dollar, to small losses than to small gains.
C. the consumer's valuation of an outcome is more sensitive, per dollar, to large losses than to small gains.
D. the consumer's valuation of an outcome is less sensitive, per dollar, to small losses than to large gains.
B. the consumer's valuation of an outcome is more sensitive, per dollar, to small losses than to small gains.
You might also like to view...
What do most economists believe about international trade?
a. It benefits all participants with no one harmed in the country. b. It benefits only big corporation but harms everyone else in a country. c. It benefits the majority of people but some people are harmed. d. It benefits no one and harms many people in the economy.
Exchange rate expectations:
A. affect exchanges rates and are more important than fundamentals in the short run. B. affect exchange rates, but only in the long run. C. affect exchange rates but are not as important as fundamentals in the short run. D. do not affect exchange rates in the short run or the long run.