The endowment effect is the tendency:
A. to place a higher value on something a person already owns simply because they own it.
B. to have a harder time parting with wealth people have held the longer the amount of time they hold it.
C. for a person to believe they hold a particular skill because someone told them they do.
D. for people to want to bestow their own beliefs on others when making decisions.
A. to place a higher value on something a person already owns simply because they own it.
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Cindy's Sweaters' production function is shown in the above table. Cindy rents two knitting machines for $30 a day each and hires workers at a wage rate of $40 a day
If Cindy produces 20 sweaters per day, what is her average fixed cost of production? A) $3.00 B) $3.33 C) $8.00 D) $11.00
If your income goes up by 10% and you increase your pedicures by 5%, then your demand for pedicures is ________.
A. income elastic B. income inelastic C. income unit elastic
Using Figure 35.2, the opportunity cost of producing 1 pair of golf shoes in the United States is
A. 1/3 of a baseball. B. 2 baseballs. C. 3 baseballs. D. Less than the opportunity cost in Mexico.
What is the total benefit associated with producing four units of the control variable, Q (identify point A in the table)?Control variableTotal BenefitsTotal CostsNet BenefitsMarginal BenefitMarginal CostMarginal Net BenefitQB(Q)C(Q)N(Q)MB(Q)MC(Q)MNB(Q)0000---190010080090010080021,700300C80020060032,4006001,800700E4004A1,0002,00060040020053,5001,5002,000500500F63,9002,1001,800D600-20074,2002,8001,400300700-40084,400B800200800-60094,5004,5000100900-800104,5005,500-1,00001,000-1,000
A. 600 B. 2,600 C. 3,400 D. 3,000