Question

which of the following is an example of loss aversion?
valuing something you own more than its actual worth
choosing to keep gift money rather than investing it
buying a product because it is popular with your friends
refusing to purchase a product because it is too expensive

Explanation:

Loss aversion refers to the tendency to prefer avoiding losses over acquiring equivalent gains. Valuing something you own (a loss if you were to part with it) more than its actual worth fits this, as the perceived loss of giving it up is weighted more heavily than its objective value. The other options: keeping gift money (more about risk aversion or status quo bias), buying due to friends (social influence), refusing due to expense (price sensitivity) don't align with loss aversion.

Answer:

A. Valuing something you own more than its actual worth