What Is the Endowment Effect

question 263

Multiple Choice

What is the endowment effect?

• A)the phenomenon that economic agents are endowed with different qualities and abilities so that trade among individuals increase efficiency
• B)the tendency for economic agents with abundant resources to consume a proportionately greater quantity of goods and services
• C)the tendency of people to be unwilling to sell something they already own even if they are offered a price that is greater than the price they would be willing to pay to buy the good if they didn't already own it.
• D)the tendency of firms to use celebrities endowed with good looks to promote their products

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Definitions:

Socialist Party

A political party advocating for socialism, which involves social ownership of the means of production and democratic control or regulatory mechanisms over the economy.

Local Officials

Individuals holding office or positions of authority in local government, responsible for administering laws, policies, and services at a municipal or regional level.

Economic Exploitation

The act of using someone's labor unfairly for economic gain, often by paying low wages or by upholding unjust working conditions.

Socialist Party

A political organization advocating for socialism, which seeks to promote social ownership and democratic control of the means of production and distribution of goods.