Define risk aversion and explain how this concept applies to ...

[BRWH]

Define risk aversion and explain how this concept applies to perceptions of social changes that could result in greater racial equality for both whites and blacks.
 
  What will be an ideal response?

Question 2

Sarah recently went to a party even though she was in a very poor mood. At the party, she met a man named Alan, an architect from San Diego. In one month's time, Sarah will more easily remember these details if she ________.
 
  a) has spoken to Alan again during this month
  b) tries to recall them while in a negative mood
  c) tries to recall them while in a positive mood
  d) is at another party and is in a positive mood

[JaynaD87]

Answer to Question 1

Risk aversion causes people to weigh possible losses more heavily than equivalent potential gains. It's possible that whites will perceive greater equality from the standpoint of a potential loss for their groupcompared to their historically privileged position. Whites will therefore respond to additional movement toward equality more negatively, and suppose that more change has already occurred, than will blacks. In contrast, if we assume that blacks are likely to see greater equality as a potential gain for themcompared to their historically disadvantaged positionthen change toward increased equality will be experienced as a positive. But, if a possible loss evokes more intense emotion than a possible gain, then increased equality should be more negative for whites than the same increased equality is positive for blacks.

Answer to Question 2

b

[BRWH]

Thanks for the timely response, appreciate it

[carojassy25]

Wow, this really help