Chat with AIExam 22: Behavioral Economic Policy
What is economic engineering?
(78) 
VerifiedEconomic engineering is the field of economics devoted to developing markets and coordinating mechanisms, not just studying them.
Why are decisions where costs and benefits are separated by time difficult to make? Can you give an example?
(81) VerifiedThese decisions are difficult to make because the traditionally rational approach to decision making (where one compares costs to benefits) is more difficult. Benefits today are not the same as benefits in the future; costs today are not the same as costs in the future. When the costs are borne today, but the benefits are not enjoyed until the future (or vice versa), one or the other must be converted in a way that allows them to be compared. This is a difficult process. Student examples may vary, but examples about borrowing or savings are good ones.
Do nudges meet the criteria of libertarian paternalism?
(81) VerifiedFor the most part, they do. Nudges do not force decision makers to make one choice or another, but rather guide decision makers toward beneficial choices. If the nudge, for whatever reason, guided the decision maker toward making bad choices, then the nudge would be libertarian, but not paternalistic.
What is a push policy and how is it related to a nudge policy? Does a push policy meet the criterion of libertarian paternalism? Why would a push policy be necessary? Give an example of a push policy.
(60) Behavioral economists say that desires are affected by one's context; what do traditionalists say?
(72) Are people from market-oriented societies generally more or less moral? Why is that?
(89) What is a shadow price? Why is it advantageous to include shadow prices in economic models?
(93) What are the two different kinds of nudges? Explain each and provide an example.
(87) If crafting economic policy is difficult, can policy makers be "nudged" in a way that will help them?
(79) What is the criterion of libertarian paternalism? Does a "nudge policy" meet this criterion?
(67) What feature of the traditional model directs many traditional economists to support the precept of laissez-faire?
(71) If private firms are in the best position to nudge individuals (as employees or customers) to make more beneficial decisions, then why don't they provide these nudges?
(75) Why did the number of late pickups rise when day care centers began to charge parents extra for late pickups? What does this mean for behavioral economic policy?
(90) What does it mean to say that some modern economists are doing the work of "reverse engineers"?
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