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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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.
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