According to the "endowment effect:"
A. people are willing to pay more for things they don't own than they would have to receive to
give up something they already have.
B. people feel gains and losses with equal intensity.
C. people assign higher values to things they own than things they don't.
D. the intensity of feelings from gains and losses depends on how much wealth one
possesses.
Answer: C
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John Maynard Keynes wrote that economies can suffer recession or depression for many years if the government does not intervene.
Answer the following statement true (T) or false (F)
During which of the following periods did the U.S. economy have mostly small trade surpluses?
a. From the 1950s into the 1960s b. From the 1960s into the 1970s c. From the 1960s into the 1980s d. From the 1970s into the 1980s
What do you mean by a specialized task assignment and what are its advantages?
What will be an ideal response?
If the government were to increase income taxes, we would predict:
A. a shift in aggregate demand to the right. B. a downward movement along the aggregate demand curve. C. a shift in aggregate demand to the left. D. an upward movement along the aggregate demand.