Some behavioral economists explain the so-called "endowment effect" to be a consequence of people's tendency to:
A. Feel gains more intensely than losses
B. Feel losses more intensely than gains
C. Focus mentally on a recently-viewed number
D. Feel strongly about fairness and generosity
B. Feel losses more intensely than gains
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The terms "saving" and "savings" differ in that
A) saving is a stock, and savings are a flow. B) saving always exceeds savings. C) savings are a stock, and saving is a flow. D) savings can be negative, but saving cannot.
When firms in a price-taker market are temporarily able to charge prices that exceed their production costs,
a. the firms will earn long-run economic profit. b. additional firms will be attracted into the market until price falls to the level of per-unit production cost. c. the firms will earn short-run economic profits that will be offset by long-run economic losses. d. the existing firms must be colluding or rigging the market, otherwise, they would be unable to charge such high prices.
Ricky leaves his job as a high school math teacher and returns to school to study the latest developments in computer programming, after which he takes a higher paying job at a software firm. This is an example of
a. A compensating differential. b. Human capital. c. Signaling. d. Efficiency wages
Drug companies tend to attribute higher drug prices on
A. doctors distributing too many free samples. B. high invention costs and long testing processes. C. high invention costs. D. long testing processes.