The tendency to give more weight to possible losses than to possible gains when making decisions that require tradeoffs is known as ____.

A) the certainty effect
B) temporal discounting
C) risk aversion
D) the status quo bias

Temporal Discounting

The tendency for people to value immediate rewards more highly than future rewards, often leading to impulsive decisions.

Risk Aversion

The tendency to prefer certainty over uncertainty, characterized by a preference for safe options over risky ones.

Certainty Effect

The psychological phenomenon where people tend to give greater weight to outcomes that are certain, compared to outcomes that are probable.