When making a decision, one should consider the desirability of each option, as well as the risks associated with each. This is the core of __________ theory.
A) loss aversion
B) utility
C) satisficing
D) decision maximization

Question

Quizplus · Accepted Answer

The core of utility theory is to maximize the net benefits or utility of a decision by considering the desirability of each option and its associated risks. The other options are not as relevant to this approach. Loss aversion focuses on the fear of losing something rather than maximizing benefits. Satisficing is focused on finding a satisfactory solution rather than maximizing benefits. Decision maximization is not a recognized theory.

When Making a Decision, One Should Consider the Desirability of Each