Harvey Miller owns a baseball that was hit for a home run by Ted Williams
Harvey, a long-time Boston Red Sox fan, recently refused to sell his baseball for $75,000 even though he would not have paid someone more than $10,000 for the baseball if he did not already own it. Harvey explained his decision not to sell the baseball by noting that: "Ted Williams was my hero. This baseball has a great deal of sentimental value for me." Which of the following can explain Harvey's behavior?
A) how social influences can affect consumption choices
B) the difference between implicit and explicit costs
C) the endowment effect
D) the scarcity of home run baseballs hit by Ted Williams
C
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On hot summer days, electricity-generating capacity is sometimes stretched to the limit. At these times, electric companies may ask people to voluntarily cut back on their use of electricity. An economist would suggest that
a. every electric customer has an incentive to prevent the system from overloading, so this voluntary approach is the most efficient. b. it would be more efficient if the electric company raised its rates for electricity at peak times. c. it would be more efficient to have a lottery to decide who had to cut back their use of electricity at peak times. d. it would be more efficient to force everyone to cut their usage of electricity by the same amount.
The peak phase of the business cycle represents
A) a temporary maximum output level of Gross Domestic Product (GDP).
B) an increase in foreign investment.
C) a labor surplus.
D) falling prices.
The primary cause of frictional unemployment is:
A. discouraged workers who give up looking for work. B. fluctuations in aggregate demand. C. the lack of training and marketable qualifications in job seekers. D. inaccurate information about job opportunities.
If the government spends more than it receives in taxes during a given interval, then the result is
A. the gross public debt. B. the net public debt. C. a balanced budget. D. a government budget deficit.