Which of the following statements about the framing effect is false?
A)The framing effect violates the invariance principle.
B)In the framing effect, preferences are said to have "reference dependence."
C)When people think of decisions in terms positive outcomes they tend to be risk seeking.
D)The framing effect can be seen across a wide variety of decision contexts.
E)The framing effect can cause preference reversals.

Question

Quizplus · Accepted Answer

When people think of decisions in terms of positive outcomes, they tend to be risk-averse, not risk-seeking. This statement is the opposite of the actual effect.

Which of the Following Statements About the Framing Effect Is