In the realm of public policy, loss aversion makes it:
A)difficult to enact policy changes.
B)easy to enact policy changes.
C)difficult to identify those who stand to lose from policy changes.
D)easy to identify which policies involve the largest efficiency gains.

Question

Quizplus · Accepted Answer

The general resistance to change, often stemming from loss aversion, is known as status quo bias. In the realm of public policy, status quo bias makes it difficult to enact policy changes.

In the Realm of Public Policy, Loss Aversion Makes It