The endowment effect suggests that that people
A) are concerned about the welfare of others.
B) act in ways to distort market prices.
C) have a strong attachment to their entitlement, regardless of whether they paid to acquire it.
D) have a strong sense of fairness.
C
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
A monopsony firm in a labor market hires fewer workers than would a competitive firm
a. True b. False Indicate whether the statement is true or false
A change in price that is accompanied by a change in income sufficient to leave a consumer's well-being unchanged is called:
A. an uncompensated price change. B. a compensated price change. C. an income adjusted price change. D. the income effect.
A speculative attack on an overvalued currency leads to a(n) ________ in international reserves and a(n) ________ in the fundamental value of the currency.
A. increase; decrease B. increase; increase C. decrease; decrease D. decrease; increase