Economist David Friedman Pointed Out That

question 91

Multiple Choice

Economist David Friedman pointed out that

• A)the endowment effect is not limited to humans.
• B)the law of diminishing marginal utility does not hold for money.
• C)the diamond-water paradox would not exist if water was scarce and diamonds were plentiful.
• D)the government should provide the necessities of life for free.

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Definitions:

Upsetting Thoughts

Thoughts that cause emotional distress or discomfort.

Objectively

In a manner that is based on unbiased facts and evidence, without influence from personal feelings or opinions.

Dichotomous Thinking

A cognitive distortion involving seeing things in black and white categories, without recognizing the continuum or grey areas in between.

Selective Abstraction

A cognitive distortion where an individual focuses on a single negative detail or event, often out of context, leading to a skewed perception of reality.