Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 8 - Behavioral Economics - Discussion Questions: 6

Answer

The answer is below.

Work Step by Step

Being loss averse means that you feel worse about losing money than you feel good about gaining the same amount of money. This is a good thing, for one of the principles of economics is that increased risk should not be taken without increased perceived benefits.
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