Respuesta :
When making decisions that require tradeoffs, most people show a tendency to give more weight to possible losses than to possible gains.
Risk aversion is the propensity to prioritize potential losses over potential rewards when making choices that include trade-offs.
What is tradeoffs?
- A trade-off is a situational choice where one quality, quantity, or feature of a set or design is diminished or lost in exchange for gains in other areas.
- In plain English, a tradeoff occurs when one item gets better while another must go worse.
- The phrase "trade-off" is frequently used in economics to refer to opportunity cost. A trade-off entails making a sacrifice in order to get a service or an experience that is wanted.
- You may make sure that you are utilizing your resources (whether they be time, money, or energy) appropriately by being aware of the trade-offs involved in every choice you make.
Learn more about tradeoffs here:
https://brainly.com/question/26477884
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