If you exhibit the endowment effect as a decision maker, then you are
A) consuming based on celebrity endorsements.
B) deciding on the basis of sunk costs.
C) buying something you can't really afford because you expect to save in the future.
D) ignoring non-monetary opportunity costs.
D
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Which of the following is not a subcategory of consumption spending?
a. consumer services b. consumer investment c. consumer durable goods d. consumer nondurable goods
The Federal Open Market Committee includes:
A. the Board of Governors. B. the Secretary of State. C. all regional bank presidents. D. the Chairman of the Treasury.
The U.S. government need never default on its debt because
A. it can easily nationalize banks, who own all the debt, and then owe it to itself. B. it can raise the funds it needs to repay by taxation, and it can print money to repay. C. it owes the debt to itself, and it can always ignore a demand for repayment. D. it can simply reduce spending enough to generate funds to repay its debt.
If the U.S. dollar appreciates relative to the British pound, then:
A. The pound will appreciate relative to the U.S. dollar B. The pound will depreciate relative to the U.S. dollar C. British goods will be more expensive for Americans D. American goods will be less expensive for the British