If you exhibit the endowment effect as a decision maker, then you are
A) consuming based on celebrity endorsements.
B) deciding on the basis of sunk costs.
C) buying something you can't really afford because you expect to save in the future.
D) ignoring non-monetary opportunity costs.
D
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Excess reserves are equal to
A) the sum of desired reserves plus any reserves that are more than are required. B) actual reserves minus desired reserves. C) actual reserves plus desired reserves. D) desired reserves minus actual reserves.
The basic difference between a tariff and quota is that:
a. quota can be imposed both on imports and exports whereas a tariff can be imposed only on imports. b. quota yields revenue to the government whereas tariff does not yield any revenue. c. tariff reduces the import of the goods with greater certainty than quota as the amount of import restricted by quota depends on the price elasticity of demand for importable. d. tariff is a quantitative restriction on imports whereas quota is an import duty. e. a tariff raises the price of the product only in the domestic market whereas with a quota, both domestic and foreign producers receive a higher price.