Prospect Theory in Economics: Definition & Example

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Who developed prospect theory?

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1. At its core, prospect theory questions whether humans are as _____ as we thought we were.

2. All are examples of human's tendency towards loss-aversion-risk-seeking-behavior EXCEPT for _____

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About This Quiz & Worksheet

The quiz/worksheet combo is available in case you would like to test your comprehension of prospect theory. Examples of loss-aversion-risk-seeking behavior and the pair who developed the prospect theory are topics covered on the quiz.

Quiz & Worksheet Goals

Take the quiz to check your comprehension of:

  • The effects of the creation of the prospect theory
  • People who developed the prospect theory
  • Something the prospect theory questions
  • Examples of human's tendency towards loss-aversion-risk-seeking-behavior

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the lesson on the prospect theory
  • Information recall - access the knowledge you have gained about how to interpret a graph showing loss and gain
  • Interpreting information - verify that you can read information about something the prospect theory is responsible for uncovering and interpret it correctly

Additional Learning

Prospect Theory in Economics: Definition & Example is a lesson you can use any time to complete the following tasks:

  • Determine when the prospect theory was developed
  • See what implications this theory has
  • Review real-world examples of the prospect theory
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