Which of the following is an example of the endowment effect? ...

[luvbio]

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.

[ambernicolefink]

Answer to Question 1

A

Answer to Question 2

D

[luvbio]

Excellent

[amynguyen1221]

TYSM