Which of the following is true of loss aversion?
A) A person is more sensitive to getting something, such as better health, than the loss of money.
B) A person wants to avoid losing money rather than gain better health.
C) A person reacts to an immediate loss even if it is small, as opposed to a long-term gain that may be large.
D) A person accepts losses whenever they occur.

Question

Quizplus · Accepted Answer

Loss aversion refers to the tendency for people to prefer avoiding losses rather than acquiring equivalent gains, meaning they react more strongly to immediate losses than to potential long-term gains.

Which of the Following Is True of Loss Aversion