Prospect theory argues that when people make decisions under conditions of _____ they are more motivated to avoid losses than they are to seek gains.
A)certainty
B)rationality
C)risk
D)insanity
E)burnout

Question

Quizplus · Accepted Answer

Prospect theory emphasizes that when people are uncertain about the outcome of a decision, they tend to be more motivated to avoid losses than to seek gains. This is referred to as loss aversion. When people face risk, they tend to weigh potential losses more heavily than potential gains, and this can have a significant impact on their decision-making. Therefore, option C (risk) is the best choice. Options A, B, and D are not related to this theory, and option E is not a commonly used term in this context.

Prospect Theory Argues That When People Make Decisions Under Conditions