The Endowment Effect Refers to the Tendency for People ____

question 121

Multiple Choice

The endowment effect refers to the tendency for people ____.

• A) to regard items that they own as more valuable and desirable than they really are
• B) to regard "natural talents" more positively than skills and traits that one has worked hard to acquire
• C) to regard skills and traits that one has worked hard to acquire more positively than "natural talents"
• D) to believe that most major skills and traits (e.g., intelligence, athleticism, humor) are fixed at birth and cannot be acquired through hard work

---

Definitions:

Revenue

The income that a business receives from its normal business activities, usually from the sale of goods and services to customers.

Expenses

The costs incurred in the process of generating revenue, including but not limited to rent, salaries, and utilities.

Income Statement

A financial document that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income or loss.

Financial Record

Documents that capture all the financial transactions of an individual or an organization, serving as a historical account of financial health and activity.