Which of the following might explain the evidence of an endowment effect in behavioral economics?
A) government regulation
B) knowledge and experience
C) the federal tax code
D) class envy
Question 2
In behavioral economics, the endowment effect refers to
A) most people believe that most wealthy people inherit their wealth.
B) many people would be indifferent between being endowed with money or knowledge.
C) many people place a higher value on what they own than when they consider purchasing.
D) most people respond to tax incentives to provide an endowment for their children.
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