Multiple Choice
What is an example of an endowment effect?
A) Riku paid $3,100 for a used car that he values at $4,000. Recently, Riku was offered $4,400 for the car but refuses to sell it.
B) Haru receives increasing marginal utility as his 401K plan increases.
C) Hana prefers a guaranteed $200 to a gamble with an expected value of $200.
D) Akari refuses to transfer money from her checking account into her savings account, even though she has paid all her monthly bills.
Correct Answer:
Verified
Correct Answer:
Verified
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