The tendency of people to overestimate the value of their possessions when, say, considering such value for insurance purposes is known in prospect theory as the:
A. Anchoring effect
B. Endowment effect
C. Status quo bias
D. Confirmation bias
B. Endowment effect
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If a person chooses self-sufficiency, then she can only consume what she produces
a. True b. False Indicate whether the statement is true or false
Wells Fargo, J.P. Morgan Chase, and Citibank are all primarily:
A. commercial banks. B. mutual fund companies. C. insurance companies. D. securities firms.
If a competitive firm maximizes short-run profits by producing some quantity of output, which of the following must be TRUE at that level of output?
A) p = MC B) MR = MC C) p ? AVC D) All of the above
The nature of a firm's cost (fixed or variable) depends on the
a. firm's revenues. b. time horizon under consideration. c. price the firm charges for output. d. explicit but not implicit costs.