Which type of behavior is NOT a common mistake that leads to irrational decisions?

A) mental accounting
B) loss aversion
C) risk aversion
D) misperceptions about opportunity costs

Question

Which type of behavior is NOT a common mistake that leads to irrational decisions?A) mental accountingB) loss aversionC) risk aversionD) misperceptions about opportunity costs

Rosie Atkins · Accepted Answer

Final Answer : C, Explanation :  Risk aversion is a natural, rational behavior where individuals prefer to avoid losses rather than acquiring equivalent gains. It's a fundamental aspect of human decision-making, unlike the other options which can lead to irrational decisions.

Which type of behavior is NOT a common mistake that leads to irrational decisions?

A) mental accounting
B) loss aversion
C) risk aversion
D) misperceptions about opportunity costs

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Learning Objectives

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