Explain the endowment effect
What will be an ideal response?
The endowment effect refers to the tendency of people to be unwilling to sell a good they already own even if they are offered a price that is greater than the price they would be willing to pay to buy the good if they did not already own it. This inconsistency comes from a failure to take into account nonmonetary opportunity costs.
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The population in the current year is 31.5 million and the real GDP is $814 million. The previous year's statistics were a population of 31 million and a real GDP of $800 million
The change in the standard of living, measured by growth in real GDP per person, is A) 0 percent. B) 0.13 percent. C) 1.6 percent. D) 6 percent. E) 7.75 percent.
The exchange rate between currencies of different countries is controlled primarily by ________ in currency markets
A) the outsourcing agreements B) supply and demand C) diplomatic relations D) tariff rates