A Local Government Is Considering Replacing a Public Park with a New

question 36

Multiple Choice

A local government is considering replacing a public park with a new administrative building and decides to survey the city's residents. The citizens are asked how much they would be willing to pay in increased taxes to keep the public park and also how much they would be willing to receive in a tax refund in order to accept the destruction of the park. The citizens report that they would be willing to pay on average $25 each to keep the public park, but they would need to receive on average $50 in a tax refund to accept the destruction of the park. This illustrates:

• A)negative framing.
• B)the endowment effect.
• C)loss aversion.
• D)status quo bias.

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Definitions:

Warehousing Functions

Activities related to the storage of goods in a warehouse such as receiving, storing, managing inventory, and preparing goods for distribution.

Push Strategy

A marketing strategy that aims to "push" products towards consumers through channels such as promotions and sales force efforts rather than creating demand through consumer interest.

Sustainable Sourcing

A process of purchasing goods and services that takes into account the long-term impact on people, profits, and planet.

Near-Sourcing

The practice of transferring a business operation or project closer to where it is consumed or where the product is sold, aiming to reduce transportation costs and time.