Question

question 1 (2 points) loss aversion is the tendency to do which of the following? a) prefer gains over equivalent losses. b) overestimate the probability of rare events. c) prefer avoiding losses rather than acquiring equivalent gains. question 2 (2 points) which of the following is an example of status quo bias? a) regularly switching brands to find the best one.

Explanation:

Loss aversion is a concept in behavioral economics (a sub - field of Business) where individuals prefer avoiding losses to acquiring equivalent gains. This is a key principle in understanding decision - making under risk.

Answer:

C. Prefer avoiding losses rather than acquiring equivalent gains.