People tend to realise gains more than losses

Question 6There is lots of evidence to suggest that we are inclined totreat “money won” differently from “money earned.” Which of the following biases is best able toexplain this phenomenon, which often results in our being more willing togamble with money that we have won, rather than earned? 1 point Loss Aversion Risk Seeking over Losses Endowment Effect Mental Accounting Disposition Effect

Gains from trade arise because of:

Profits and losses are always allocated equally between partners:

Explain one example of a business likely to gain from using loss-leader pricing.

State the law of diminishing returns