Which of the following situations demonstrates the endowment effect?
a. Ishani refuses to buy a used lamp at a yard sale because she has seen the same one, brand new, for a similar price at a department store.
b. Aliyah prefers one brand of kombucha over another simply because the other one seems outrageously expensive.
c. Dakota cannot decide which jacket is more practical, so she texts pictures of both to her mom to ask her opinion.
d. Anil argues that a car dealership should give him more on his trade-in because he bought it for $43,000 only a few years ago.
d. Anil argues that a car dealership should give him more on his trade-in because he bought it for $43,000 only a few years ago.
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Globalization does not reward countries that follow good economic policies with greater access to the savings of the rest of the world to help finance growth and development
a. True b. False Indicate whether the statement is true or false
Inflation isn't costly just because prices are going up. After all, inflation means salaries and wages are going up as well. If higher prices are not the problem, discuss two important aspects of inflation that are costly
Cummins, Hubbard, and Hassett found that investment responded to a tax change that affected the user cost of capital, with an elasticity of
A. -0.25. B. 0. C. -0.66. D. -1.
If a nation's population grows, then
A) growth in real GDP per person will be less than the growth of real GDP. B) there can be no economic growth. C) growth in real GDP per person will be greater than the growth of real GDP. D) there must be an increase in real GDP per person.