According to ________, people are often risk averse when it comes to gains and risk preferring when it comes to losses
A) prospect theory
B) the reflection effect
C) the certainty effect
D) the framing effect
B
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In a perfectly competitive market, a marginal entrant:
A) earns positive economic profits in the long run. B) is the first firm to enter a market. C) is indifferent between entering and not entering. D) determines the market price of the good it produces.
The average total cost curve of a firm is U shaped but the average variable cost is not.
Answer the following statement true (T) or false (F)
Which of the following would likely result if a constitutional amendment requires the U.S. government to balance its budget every year?
a. Fiscal spending would increase largely resulting in a higher government debt b. Automatic stabilizers would cease to work and the severity of economic fluctuations would worsen. c. Interest rates would become highly volatile with the increased use of discretionary monetary policies. d. Unemployment would be below its natural rate and output would be at the potential level.
_______________________: A forced sale or a desperation purchase can cause unequal bargaining power between buyers and sellers. more commonly, personal relationships may cause a transaction price to be lower than true market value, as when a parent " sells" real estate to a son or daughter.
Fill in the blank(s) with the appropriate word(s).