In what way does a person justify avoiding a risky investment based on effort required instead of potential profit?

In what way does a person justify avoiding a risky investment based on effort required instead of potential profit?

• A. Rationalization
• B. Preference
• C. Self-sabotage
• D. Wishful Thinking

Answer: (A)

Rationalization is a psychological defense mechanism where individuals explain or justify their decisions to themselves in a way that makes them feel better about those choices. In the context of avoiding a risky investment, a person may emphasize the amount of effort required to research and manage that investment rather than considering the potential profit it could yield. By focusing on the effort rather than the reward, they create a logical reason for their choice, which helps alleviate any potential feelings of uncertainty or regret associated with their decision to avoid the investment. This justification acts as a way to maintain their self-image and avoid facing the reality that there may be valid reasons to take the risk. In contrast to rationalization, preference would indicate a deliberate choice based on likes or dislikes, self-sabotage implies a subconscious desire to undermine one's own success, and wishful thinking refers to hoping for favorable outcomes without a practical basis. Each of these concepts does not capture the specific decision-making process highlighted by rationalization, where effort is used as a key factor in justifying avoidance.

Rationalization is a psychological defense mechanism where individuals explain or justify their decisions to themselves in a way that makes them feel better about those choices. In the context of avoiding a risky investment, a person may emphasize the amount of effort required to research and manage that investment rather than considering the potential profit it could yield. By focusing on the effort rather than the reward, they create a logical reason for their choice, which helps alleviate any potential feelings of uncertainty or regret associated with their decision to avoid the investment.

This justification acts as a way to maintain their self-image and avoid facing the reality that there may be valid reasons to take the risk. In contrast to rationalization, preference would indicate a deliberate choice based on likes or dislikes, self-sabotage implies a subconscious desire to undermine one's own success, and wishful thinking refers to hoping for favorable outcomes without a practical basis. Each of these concepts does not capture the specific decision-making process highlighted by rationalization, where effort is used as a key factor in justifying avoidance.