The tendency of people to value something more highly when they own it is called the
A) wealth effect.
B) endowment effect.
C) path dependent effect.
D) endorsement effect.
B
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Player 1 and Player 2 are playing a game in which Player 1 has the first move at A in the decision tree shown below. Once Player 1 has chosen either Up or Down, Player 2, who can see what Player 1 has chosen, must choose Up or Down at B or C. Both players know the payoffs at the end of each branch. 
Suppose Player 1 and Player 2 enter into a binding agreement in which Player 1 agrees to pay Player 2 a fixed amount of money to get Player 2 to play Up when it is Player 2's turn. How much will Player 1 have to pay Player 2 to get Player 2 to play Up?
A. at least $20. B. at least $50. C. at least $10. D. $0
"If there is an inefficient level of nursing care in South America, a deadweight loss exists." Is this statement true or false?
What will be an ideal response?
Puma's share of the athletic shoe market is 30% The own price elasticity of demand for Puma athletic shoes is 2.5 . What would be the own price elasticity of athletic shoes as a whole?
a. 8.3 b. 0.75 c. 0.54 d. 1.5
Suppose that the opportunity cost of producing a rocking chair in Mexico is 50 basketballs and the opportunity cost of a rocking chair in Japan is 80 basketballs. Japan and Mexico can realize mutual gains if the terms of trade are
a. greater than 80 basketballs per rocking chair, and Japan produces rocking chairs b. between 50 and 80 basketballs per rocking chair, and Japan produces basketballs c. greater than 80 basketballs per rocking chair, and Mexico produces basketballs d. less than 50 basketballs per rocking chair, and Japan produces basketballs e. between 50 and 80 basketballs per rocking chair, and Japan produces rocking chairs