The endowment effect:
A. refers to the observation that people tend to value something more highly when they own it than when they don't.
B. refers to the observation that people tend to value something more highly when they don't own it than when they do.
C. refers to the fact that when confronted with many alternatives, people sometimes avoid making a choice and end up with the option that is assigned as a default.
D. refers to the observation that people do not have a strong attachment to the status quo.
A. refers to the observation that people tend to value something more highly when they own it than when they don't.
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In a market with asymmetric information, ________
A) buyers tend to forget relevant information about the good being traded B) buyers set the price of the good being traded C) buyers and sellers have different information about the good being traded D) buyers have very low bargaining power
The time constraint for the consumer is
A) the amount of time for decision making. B) expressed as leisure time - time spent working = total time available. C) expressed as leisure time - sleep time = time spent working. D) expressed as leisure time + time spent working = total time available.
Jennifer buys a piece of costume jewelry for $33 for which she was willing to pay $42. The minimum acceptable price to the seller, Nathan, was $30. Jennifer experiences:
A. a consumer surplus of $12 and Nathan experiences a producer surplus of $3. B. a producer surplus of $9 and Nathan experiences a consumer surplus of $3. C. a consumer surplus of $9 and Nathan experiences a producer surplus of $3. D. a producer surplus of $9 and Nathan experiences a producer surplus of $12.
The mortgage is said to be underwater when
A) the value of the house exceeds the value of the mortgage. B) the house is flooded. C) the value of the mortgage exceeds the value of the house. D) none of the above