Prospect theory asserts that individuals
A) seek to uncover all the costs and benefits associated with foreign policy options.
B) weigh options based on how the choices are framed.
C) misperceive the intentions of others, which bias their decisions.
D) are able to learn lessons from history in order to improve their decision-making skills.

Question

Quizplus · Accepted Answer

Prospect theory suggests that individuals weigh options not solely on objective costs and benefits, but also on how the choices are framed or presented. This means that the way an option is presented can influence the decision-making process, even if the options have the same expected outcome.

Prospect Theory Asserts That Individuals