Which Emotion May Decrease the Endowment Effect,causing an Owner of a Good

question 1

Multiple Choice

Which emotion may decrease the endowment effect,causing an owner of a good to lower his or her selling price?

• A)Anger.
• B)Disgust.
• C)Happiness.
• D)Fear.

---

Definitions:

Gain

A financial increase resulting from a transaction that exceeds the cost or value of the item sold or exchanged.

Direct Method

A way of preparing the cash flow statement where actual cash flows from operating activities are listed directly.

Operating Activities

Business activities related to the day-to-day functions of producing goods or offering services, impacting the company's cash flow.

Going Concern

An accounting principle that assumes a company will continue to operate and remain in business for the foreseeable future.