-In the Above Figure, the Movement from Point B to Point

question 197

Multiple Choice

-In the above figure, the movement from point B to point A might be the result of

• A) an increase in government expenditures because of a war.
• B) an increase in government expenditures because of increases in education expenditures.
• C) an increase in the demand for manufacturing goods because of new technology.
• D) a fall in the price level.

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Definitions:

Endowment Effect

A psychological inclination to value possessions more highly solely due to personal ownership.

Endowment Effect

A mental occurrence in which individuals attribute increased worth to objects simply because they possess them.

Losses

Negative financial results stemming from expenses exceeding revenues or from decreases in asset values.

Gains

The benefits or profits gained from a particular activity or financial transaction.