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 148 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
Gracias!


mohan

  • Member
  • Posts: 362
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

Did you know?

There are approximately 3 million unintended pregnancies in the United States each year.

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

Russia has the highest death rate from cardiovascular disease followed by the Ukraine, Romania, Hungary, and Poland.

Did you know?

Blood in the urine can be a sign of a kidney stone, glomerulonephritis, or other kidney problems.

For a complete list of videos, visit our video library