This topic contains a solution. Click here to go to the answer

Author Question: Which of the following is an example of the endowment effect? A) A consumer places a higher value ... (Read 151 times)

luvbio

  • Hero Member
  • *****
  • Posts: 623
Which of the following is an example of the endowment effect?
 
  A) A consumer places a higher value on a good currently owned as compared to a good they are considering purchasing.
  B) A consumer uses a portion of income in order to provide income to future generations.
  C) As a consumer's income increases, they increase consumption of most goods.
  D) Consumers will tend to value objects the same for buying and selling.

Question 2

If good salespeople are extremely risk averse, then a choice between a fixed-fee contract and a contingent contract
 
  A) avoids a moral hazard.
  B) will result in all job candidates choosing the contingent contract.
  C) will result in an efficient contract.
  D) may not be a good screening device.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ambernicolefink

  • Sr. Member
  • ****
  • Posts: 359
Answer to Question 1

A

Answer to Question 2

D




luvbio

  • Member
  • Posts: 623
Reply 2 on: Jul 1, 2018
Excellent


cpetit11

  • Member
  • Posts: 321
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Did you know?

The first monoclonal antibodies were made exclusively from mouse cells. Some are now fully human, which means they are likely to be safer and may be more effective than older monoclonal antibodies.

Did you know?

The effects of organophosphate poisoning are referred to by using the abbreviations “SLUD” or “SLUDGE,” It stands for: salivation, lacrimation, urination, defecation, GI upset, and emesis.

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

For a complete list of videos, visit our video library