Which of the following is an example of the endowment effect?
A) A consumer places a higher value on a good currently owned as compared to a good they are considering purchasing.
B) A consumer uses a portion of income in order to provide income to future generations.
C) As a consumer's income increases, they increase consumption of most goods.
D) Consumers will tend to value objects the same for buying and selling.
A
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Foreign factories produce ________ of the shoes New Balance sells in the United States
A) none B) less than 15 percent C) roughly half D) about 75 percent
Suppose that for each firm in the competitive market for potatoes, long-run average cost is minimized at 20ยข per pound when 500 pounds are grown. The demand for potatoes is Q = 10,000/p
If the long-run supply curve is horizontal, then how many firms will this industry sustain in the long run? A) 0 B) 100 C) 50,000 D) There is not enough information to answer.
To arbitrage a price difference between two markets, you should:
A) sell in the low-price market and buy in the high-price market. B) buy in the low-price market and sell in the high-price market. C) sell in both markets to capture a lower average "market price." D) none of the above
The transaction demand for money is most clearly related to its use as a
A. medium of exchange. B. standard of value. C. measure of value. D. store of value. E. standard of deferred payment.