The endowment effect is the tendency:
A. to have a harder time parting with wealth people have held the longer the amount of time they hold it.
B. for people to want to bestow their own beliefs on others when making decisions.
C. for a person to believe they hold a particular skill because someone told them they do.
D. to place a higher value on something a person already owns simply because they own it.
Answer: D
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If national saving increases, ________. (Assume that the capital account is zero and net transfers are zero.)
A) the sum of domestic investment and net exports must decrease B) the sum of domestic investment and foreign investment must decrease C) the sum of domestic investment and foreign investment must increase D) foreign investment must decrease to cover the gain
A fallacy of composition is to assume that
a. you can determine the composition of a complex product just by examining its exterior properties b. consumer durable goods today do not last as long as they did a generation ago c. any mistakes made in producing a product using an assembly line technique will lead to a compounding of errors as the product moves down the line d. what is true for any individual component in a group is true for the group as a whole e. when I was young I liked cotton candy, but now that I'm older I no longer like it
A U.S. tariff on oil would reduce the domestic quantity of oil supplied.
Answer the following statement true (T) or false (F)
Output in an economy can be decreased by
A. using more machines. B. limiting the work week. C. adding more workers. D. all of the above