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:

Sherman's Neckties

A term referring to the practice by Union General William Tecumseh Sherman during the American Civil War of destroying Confederate railroad tracks by heating and then bending them.

Railroad Ties

Heavy beams used as a base for railroad tracks to hold them in place and ensure the tracks remain aligned.

North's Economy

The economic system of the northern United States, historically characterized by industrial manufacturing, as opposed to the agrarian economy of the South.

Standardization of Production

The process of implementing and developing technical standards to maximize productivity, efficiency, and quality.