Mia Recently Bought a Kayak for $700 That She Values

question 41

Multiple Choice

Mia recently bought a kayak for $700 that she values at $1,000. Mia's friend, Sofia, offered to buy the kayak from her for $1,000, but Mia turned her down. Mia is most likely encountering _____.

• A) sunk cost fallacy
• B) time inconsistency
• C) falling prey to framing effects, particularly anchoring
• D) the endowment effect

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Definitions:

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and the government.

Business Ethics

The principles and standards that guide behavior in the world of business, ensuring actions and decisions meet with societal expectations of integrity and fairness.

Theological Discussion

An in-depth conversation or debate about the nature of God, religious beliefs, and the moral implications of religious teachings.

Social Issues

Problems that influence a considerable number of individuals within a society, often related to matters that impact people's personal lives and interactions.