In behavioral economics, the endowment effect refers to the fact that
A) most people believe that most wealthy people inherit their wealth.
B) many people would be indifferent between being endowed with money or knowledge.
C) many people place a higher value on what they own than the same item they are considering purchasing.
D) most people respond to tax incentives to provide an endowment for their children.
C
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On a traditional supply and demand diagram,
A. price is measured along the horizontal axis and quantity along the vertical axis. B. price is measured along the vertical axis and quantity along the horizontal axis. C. quantity demanded is measured along the horizontal axis, quantity supplied is measured along the vertical axis, and price is indicated on the contour lines. D. quantity is measured along both axes and price is indicated on the contour lines.
Refer to Figure 16-2. What is the price charged in the two markets?
A) price in the student market = price in the non-student market = Pb B) price in the student market = Pc; price in the non-student market = Pe C) price in the student market = price in the non-student market = Pa D) price in the student market = Pd; price in the non-student market = Pe
_____ is an online venue where businesses and individuals can hedge their uncertainty about whether legislation that affects them will be enacted
a. The American Civics Exchange b. Tradesports c. The Iowa Electronic Markets d. The Gallup and Roper surveys
Which of the following is an example of an adverse supply shock?
a. a decrease in the money supply b. a tax cut c. a worldwide drought d. decreased government spending