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 - Page 192: 6

Answer

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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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