This topic contains a solution. Click here to go to the answer

Author Question: Mackie's skepticism means Mackie has doubts about what's right or ... (Read 27 times)

maegan_martin

  • Hero Member
  • *****
  • Posts: 532
Mackie's skepticism means Mackie has doubts about what's right or wrong.

Question 2

Describe the risks and benefits of the natural human tendency to be risk or loss averse.
 
  What will be an ideal response



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Jevvish

  • Sr. Member
  • ****
  • Posts: 326
Answer to Question 1



Answer to Question 2

Research demonstrates that most humans are more likely to pass up an opportunity to make a gain rather than risk a loss. Humans psychologically privilege the status quo. Whenever possible, humans take an incremental approach, seeking to avoid uncertainty and the difficult cognitive tasks of weighing and combining information or trading-off conflicting values, rather than opting for more dramatic change. Muddling through personal decisions, attempting to avoid any loss, is the norm rather than the exception. We've all heard the old adage A bird in the hand is worth two in the bush. Making decisions on the basis of what we do not want to risk losing can have advantages in many circumstances. People do not want to lose control, they do not want to lose their freedom, and they do not want to lose their lives, their families, their jobs, or their possessions. And so, in real life, we take precautions. Why take unnecessary risks? The odds may not be stacked against us, but the consequences of losing at times are so great that we would prefer to forgo the possibilities of gain to not lose what we have. Can you think of an example of this in your life? We are more apt to endure the status quo, even as it slowly deteriorates, than we are to engage in change that we perceive as radical or dangerous. Loss and risk aversion have the disadvantages of leading to paralysis or delay precisely when action should be taken. Having missed that opportunity to avert a crisis, we discover later that it requires a far greater upheaval to make the necessary transformations once the crisis is upon us. Worse, on occasion, the situation has deteriorated beyond the point of no return. In those situations we find ourselves wondering why we waited so long before doing something about the problem back when it might have been possible to salvage the situation. History has shown time and time again that businesses that avoid risks often are unable to compete successfully against those willing to move more boldly into new markets or into new product lines. Uncertainty, risk, and fear of loss are the tools of those who oppose change, just as optimistic bias and simulation are the tools of the proponents of change.




maegan_martin

  • Member
  • Posts: 532
Reply 2 on: Jun 19, 2018
YES! Correct, THANKS for helping me on my review


jojobee318

  • Member
  • Posts: 298
Reply 3 on: Yesterday
Gracias!

 

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

Did you know?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

For a complete list of videos, visit our video library