The endowment effect is used to describe the mistake a consumer makes when he accounts for the monetary costs of his decisions but ignores the nonmonetary opportunity costs.
a. true
b. false
b. false
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Which of the following questions is a macroeconomic issue?
A) How many more pounds of cookies will a consumer purchase if the price of cookies decreases? B) What effect would a cure for Mad Cow Disease have on the market for beef? C) What is the future growth prospect for an economy? D) How many workers should the owner of a business hire?
For restrictive covenants to help reduce the moral hazard problem, they must be ________ by the lender
A) monitored and enforced B) written in all capitals C) easily changed D) impossible to remove
How could the rumor of a bank failure actually turn into a bank failing? Is the bank really without assets?
Among the key ingredients that propelled the American economy to emerge as the leading industrial power by the beginning of World War I were
A. the world's first universal public education system. B. a large agricultural surplus. C. entrepreneurial abilities of great industrialists. D. all of the choices are true.