Alan Krueger conducted a survey of fans at the 2001 Super Bowl who purchased tickets to the game for $325 or $400. Krueger found that (a) 94 percent of those surveyed would not have paid $3,000 for their tickets, and (b) 92 percent of those surveyed

would not have sold their tickets for $3,000. These results are an example of

A) rational consumer behavior.
B) the endowment effect.
C) the fallacy of composition.
D) the failure to ignore sunk costs.


Answer: B

Economics

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a. True b. False Indicate whether the statement is true or false

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Which of the following is a plausible explanation for a firm paying above-equilibrium wages to its workers?

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Economics

Competitive firms cannot individually affect market price because

A. There is an infinite demand for their goods. B. Their individual production is insignificant relative to the production of the industry. C. The government exercises control over the market power of competitive firms. D. Demand is perfectly inelastic for their goods.

Economics