What Is the Endowment Effect

question 302

Multiple Choice

What is the endowment effect?

• A)the tendency of people to be unwilling to sell something they already own even if they are offered a price that is greater than what they would be willing to pay to buy the good if they did not already own it
• B)the tendency of people to be unwilling to sell something they already own because of its sentimental value
• C)the tendency of people to overstate the value of a good they already own even though similar items can be purchased at a lower price
• D)the sum total of assets that a person has acquired over the years

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Definitions:

Transracial Adoption

The adoption of a child that is of a different race than the adoptive parents, aimed at providing a loving home to children while also navigating cultural and identity issues.

Vicarious Parenthood

Experiencing the roles and responsibilities of parenting indirectly, such as through caring for a relative's or friend's child.

Infertility

The inability to conceive a child after trying for a certain period, usually around a year.

Pelvic Inflammatory Disease

A serious infection of the female reproductive organs, often caused by sexually transmitted bacteria.