When a consumer refuses to sell an antique for less than the price she paid for it despite what the market price is, she is exhibiting ______.
a. anchoring
b. the endowment effect
c. the gambler’s fallacy
d. overconfidence
b. the endowment effect
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Consider the following scenario: The Kellogg's facility buys corn and makes boxes of cornflakes. The grocer buys the boxes and places them on the shelf. A mother then buys a box for her family
Which of the following would be classified as a purchase of a final good? A) The cornflakes purchased by the mother B) The cornflakes purchased by the grocer C) The corn purchased by Kellogg's D) All of the above. E) None of the above.
Fiscal policy involves ________
A) taxes and government spending B) setting interest rates C) controlling the amount of money in the economy D) all of the above E) none of the above
Suppose an individual experiences a permanent increase in income. As a result of this increased income, further assume that the individual eats dinner at restaurants more frequently each month
This information suggests that dinners at restaurants for this individual are A) an inferior good. B) a substitute good. C) a normal good. D) both complimentary and inferior.
Explain how Steve Jobs was able to make an economic profit with his company, Apple Computers
What will be an ideal response?