In behavioral economics, the endowment effect refers to
A) most people believe that most wealthy people inherit their wealth.
B) many people would be indifferent between being endowed with money or knowledge.
C) many people place a higher value on what they own than when they consider purchasing.
D) most people respond to tax incentives to provide an endowment for their children.
C
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If nominal GDP increases by 4 percent, then
a. real output has increased by 4 percent b. the price level has increased by 4 percent c. consumer spending must have increased by 4 percent d. it is possible that all of the increase was caused by an increase in the price level e. net exports increased by 4 percent
If China has domestic assets of $50 billion, domestic liabilities of $100 billion, and $50 billion in foreign assets, a 10% appreciation of the Chinese yuan will:
A) cause the Chinese domestic assets to increase in value. B) cause the Chinese domestic liabilities to decrease in value. C) cause the overall wealth to decrease by 5%. D) cause the overall wealth to increase by 5%.
If a person takes $100 from his/her piggy bank at home and puts it in his/her savings account, then M1 will ________ and M2 will ________
A) increase; increase B) not change; increase C) decrease; increase D) decrease; not change E) increase; decrease
Refer to the given data. If the economy was opened to free trade and the world price of $1 prevailed, the price and quantity sold of this product would be:
Answer the question on the basis of the following domestic supply and demand schedules for a product. Suppose that the world price of the product is $1.
A. $1 and 1 unit.
B. $1 and 16 units.
C. $3 and 7 units.
D. $2 and 11 units.