According to the endowment effect, people are unwilling to sell a good they already own in which of the following situations?
a. if they are offered a price greater than the price they would pay if they did not already own the good
b. if they are offered a price lower than the price they would have to pay to replace the good
c. if they can't replace the good
d. if the good was a gift that had great sentimental value
a. if they are offered a price greater than the price they would pay if they did not already own the good
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The interest rate banks charge each other on loans of reserves is called the
A) required reserve rate. B) discount rate. C) real interest rate. D) coupon rate. E) federal funds rate.
The largest value the Herfindahl index can have is
a. 100, which would indicate a monopoly b. 100 for firms equal in size c. 100,000 d. 10,000 . which would indicate a pure monopoly e. infinity
In reality, the long-run supply curve for a perfectly competitive market is upward sloping because:
A. of changing costs of production that firms may face. B. not all firms have identical cost structures. C. experienced firms will have different information and costs than new firms. D. All of these are true.
Total planned consumption
a. exceeds total income at very low levels of output. b. is always less than total income. c. exceeds total income at very high levels of output. d. always equals total income.