Assume That You Had a Ticket for a Basketball Playoff

question 232

Multiple Choice

Assume that you had a ticket for a basketball playoff game that you bought for $50, the maximum price you were willing to pay.If a friend of yours offers to buy the ticket for $100 but you decide not to sell it, how can your decision be explained?

• A)You expect to receive greater utility from attending the playoff game than you received from buying the ticket.
• B)By the endowment effect
• C)By the law of diminishing marginal utility
• D)The income effect from the increase in the price of the ticket from $50 to $100 was greater than the substitution effect.

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Definitions:

Combining Tasks

The process of merging separate tasks or duties into a single, more complex job role to enhance job satisfaction and productivity.

Motivating Potential

The degree to which a job or task has characteristics that can stimulate job satisfaction and intrinsic motivation in employees.

Structural Job Resources

Physical, organizational, or procedural resources and tools provided by the workplace to facilitate employees' job performance.

Predicting Work Outcomes

The process of forecasting the potential results or impacts of actions taken in a work environment.