Loss aversion is the tendency to:
A. weigh gains more heavily than losses.
B. dislike gains, but enjoy losses.
C. enjoy gains, but dislike losses.
D. weigh losses more heavily than gains.
Answer: D
You might also like to view...
On Saturday morning, you rank your choices for activities in the following order: go to the library, work out at the gym, have breakfast with friends, and sleep late. Suppose you decide to go to the library. Your opportunity cost is
A) working out at the gym, having breakfast with friends, and sleeping late. B) working out at the gym. C) zero because you do not have to pay money to use the library. D) not clear because not enough information is given.
Adverse selection problems in health insurance are reduced by all of the following except: a. requiring physical exams
b. requiring patients to pay higher deductibles. c. insuring entire groups. d. by limiting the period of open enrollment in health insurance plans.
Which of the following statements regarding poverty in the United States is correct?
a. There are as many poor African Americans as there are poor whites. b. The incidence of poverty is lower among females than among males. c. The incidence of poverty is higher among African Americans than among whites. d. Most of the poor people in the United States are elderly (over age 65).
The authors note that the goal of maximizing the market value of the firm may be more appropriate than maximizing short-run profits because:
A) the market value of the firm is based on long-run profits. B) managers will not focus on increasing short-run profits at the expense of long-run profits. C) this would more closely align the interests of owners and managers. D) all of the above