Under ________, utility is defined in terms of gains and losses.
A)prospect theory
B)heuristics
C)hyperopia
D)Zipf's law

Question

Quizplus · Accepted Answer

Prospect theory is a behavioral economics theory that suggests people's decision-making is based on the potential value of losses and gains rather than the final outcome. Therefore, utility is defined in terms of gains and losses, making it the correct answer. Heuristics refer to mental shortcuts, hyperopia is a vision disorder, and Zipf's law is a statistical distribution law.

Under ________, Utility Is Defined in Terms of Gains and Losses