According to prospect theory,people
A) separate small gains from large losses.
B) separate small losses from large losses.
C) separate small gains from large gains.
D) don't separate losses from gains.
E) separate all losses from all gains.

Question

Quizplus · Accepted Answer

Prospect theory suggests that individuals separate small gains from large losses when making decisions. This means that individuals are more sensitive to losses than gains and are more likely to take risks in order to avoid large losses, even if it means sacrificing potential gains. Small gains, on the other hand, are typically viewed as less valuable and may not be pursued as aggressively.

According to Prospect Theory,people