Question

An example of ________ is that a person may reject an investment when it is posed in terms of risk surrounding potential gains, but may accept the same investment if it is posed in terms of risk surrounding potential losses

Answer 1

An example of "Framing" is that a person may reject an investment when it is posed in terms of risk surrounding potential gains, but may accept the same investment if it is posed in terms of risk surrounding potential losses.

Explanation:

A cognitive bias (systemic fault in one's thinking) where people suggest or decide whether the choices to be viewed as plus or minus implications, instance like loss or a gain and understood as Framing effect.

People tend to avoid risk when presenting a successful frame but look for risks when presenting a negative frame. Individuals will phrase their material in such a way as to force you to join.

For an instance, a musician could say millions are listening to them. You might want to participate because that is what so many other people do.