The Tendency to Overvalue an Item Because You Own It

question 16

Multiple Choice

The tendency to overvalue an item because you own it is referred to as which one of the following?

• A)endowment effect
• B)money illusion
• C)regret aversion
• D)myopic loss aversion
• E)sunk cost fallacy

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Definitions:

Job Satisfaction

A measure of how content an individual is with their job, which can affect their motivation, performance, and loyalty to the company.

Two-Factor Theory

A psychological theory proposed by Herzberg that suggests employee satisfaction and motivation are influenced by two factors: hygiene factors and motivators.

Satisfier Factor

Refers to elements that motivate individuals when present, according to Herzberg's Two-Factor Theory, contributing to job satisfaction and motivation.

Job Context

The environmental and situational factors surrounding a job, including its tasks, work conditions, and social demands.