Which of the Following Demonstrates the Endowment Effect

question 233

Multiple Choice

Which of the following demonstrates the endowment effect?

• A)Whelan inherits a cottage in Cape Cod from his grandfather and is unwilling to sell it for sentimental reasons.
• B)Chris Hemsworth commands a premium in the movie industry because he is endowed with dashing looks.
• C)Isabella was not willing to part with her "Chris Hemsworth" poster although she was offered $100 for it, a sum greater than what it costs to purchase another such poster.
• D)If you received a good as a gift, you are less likely to attach a monetary value to the good.

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Definitions:

Severe Withdrawn

Describes an extreme level of social withdrawal, where an individual may isolate themselves and avoid interactions, often linked to mental health issues.

Nursing Home

A residence that provides a variety of services, including medical and personal care, to people who are unable to take care of themselves.

Maladaptive Coping Skills

Ineffective strategies used by individuals to manage stress or emotional discomfort, often contributing to further psychological distress.

Growth And Development

The process of physical maturation and increase in size, as well as psychological and emotional development through different life stages.