The Tendency for People to Inflate the Value of Objects,good,or

question 32

Multiple Choice

The tendency for people to inflate the value of objects,good,or services they already own is called the

• A)endowment effect.
• B)escalation effect.
• C)sunk cost effect.
• D)expectancy phenomenon.

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Definitions:

Deindustrialization

Term describing decline of manufacturing in old industrial areas in the late twentieth century as companies shifted production to low-wage centers in the South and West or in other countries.

U.S. Economy

The economic system of the United States, characterized by a mixed economy with significant levels of both private and public sector activity.

1970s

A decade known for significant cultural, political, and technological changes worldwide, including the end of the Vietnam War and the beginning of the environmental movement.

Manufacturers

Entities engaged in the industrial production of goods, transforming raw materials into finished products on a large scale.