The concept of 'Framing Effects' demonstrates that:
A. Framing never affects choices
B. Preferences are completely invariant to description
C. Only the objective outcomes matter
D. The way in which a choice is presented can systematically affect decisions even when the underlying outcomes are identical
Answer: Option D
Solution (By JKSSB Mock Tests)
Framing effects occur when logically equivalent descriptions of the same decision problem lead to different choices, violating the invariance assumption of standard rational-choice theory.
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