Alex was willing to pay $50 for the new World Cup soccer ball. When he received it as a gift, he was willing to sell it, but for no less than $80. According to behavioral economists,

A) Alex's behavior is consistent with the endowment effect.
B) Alex's behavior is irrational because of inconsistent anchoring.
C) Alex should sell the ball if he's offered any amount over $50.
D) Alex's behavior is irrational because his frame has changed.

Which one of the following is an example of unsystematic risk?

A) The inflation rate increases unexpectedly.
B) The federal government lowers income taxes.
C) An oil tanker runs aground and spills its cargo.
D) Interest rates decline by one-half of one percent.
E) The GDP rises by 2% more than anticipated.

JoAnna manages the finance department at her company,and she discovers that one of her employees is performing poorly and letting coworkers pick up the slack.JoAnna knows that resentment is building,so after an initial write-up,she proceeds with a(n) _____ of the employee.

A) downsizing
B) voluntary turnover
C) outsourcing
D) involuntary turnover

When Norris asked Fran where she wanted to go for lunch, she said Panera Bread because she used to go there at least once a week and always liked it. Fran conducted an internal search for information.

Which of the following actions have various CEOs not taken in response to widespread public concern about unfair CEO pay?

A) Cutting annual salary to $1
B) Returning incentive pay to employees in the form of company stock
C) Converting cash bonus to performance-linked shares
D) Agreeing to serve on the Sarbanes-Oxley Executive Compensation Board
E) None of these actions were taken by CEOs

How do time constraints on presentations help create a more effective presentation?

A) They force the presenter to answer all questions during the presentation instead of at the end of it
B) They force the presenter to give demonstrations that are short and easy to manage
C) They force the presenter to focus on the most essential points that are important to the audience
D) They force the presenter to develop meaningful and effective slides
E) They limit the amount of audience participation,thereby limiting potential loss of control