People often make decisions on the basis of mental accounting. One facet of this accounting is making a decision based on the way a problem was posed. This is called ________.
A) framing
B) the sum-cost fallacy
C) loss aversion
D) positioning

Question

Quizplus · Accepted Answer

Framing refers to the way information is presented or the context in which a problem is posed, which can significantly influence decision-making. This concept is a key part of mental accounting, as people often react differently based on how choices are framed, particularly in terms of gains or losses.

People Often Make Decisions on the Basis of Mental Accounting