(Consider This) Kara was earning $40,000 per year. When her income rose to $60,000 per year, she enjoyed the higher level of consumption for a while, but eventually she was no more happy than when she earned $40,000 (assume prices didn't change over
this time period). Economist Richard Easterlin described this as:
A. anchoring.
B. the endowment effect.
C. irrational economic behavior.
D. the hedonic treadmill.
Answer: D
Economics
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Susan thinks the only fair outcome is one in which she has three slices of pizza a week. Susan is using a(n) ________ concept of fairness
A) "it's not fair if the result isn't fair" B) "it's not fair if the rules aren't fair" C) "big tradeoff" D) "Novak principle"
Economics
The presence of large sunk costs often serves as a naturally imposed barrier to entry.
Answer the following statement true (T) or false (F)
Economics