Which of the Following Demonstrates the Endowment Effect

question 195

Multiple Choice

Which of the following demonstrates the endowment effect?

• A) Whelan inherits a cottage in Cape Cod from his grandfather and is unwilling to sell it for sentimental reasons.
• B) Robert Pattinson commands a premium in the movie industry because he is endowed with dashing looks.
• C) Isabella was not willing to part with her "Robert Pattinson" poster although she was offered $100 for it, a sum greater than what it costs to purchase another such poster.
• D) If you received a good as a gift, you are less likely to attach a monetary value to the good.

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Definitions:

Posterior Cerebral

Pertaining to the back part of the cerebral cortex, which is involved in processing visual information.

Cerebral Cortex

The outer layer of the cerebrum in the brain, involved in many higher-level brain functions including thought, memory, and consciousness.

Abdominal Aorta

The largest artery in the abdomen that supplies blood to many of the abdominal and pelvic organs as well as the legs.

Blood Pressure

The force exerted by circulating blood on the walls of blood vessels, a critical vital sign indicating cardiovascular health.