Exam 22: Behavioral Economics and Modern Economic Policy

Suppose the cafeteria at a university puts healthy foods such as fruit and yogurt in an easily accessible location but places junk foods somewhere slightly less prominent. This would be an example of a(n):

Behavioral economists have found that:

When looking back on past choices, some people feel they should have exercised more and eaten less. The fact that they could not make that choice at that point in time is an example of less than optimal choices resulting from the:

Requiring people to opt out of organ donation when getting a driver's license is an example of a(n):

Traditional economics argues that people know what they want better than anyone else, and this justifies the traditionalists' concentration on maximizing people's consumption.

Only money prices affect incentives; shadow prices do not.

An auction is an example of a coordination mechanism.

Suppose the federal government passes laws that require banks to disclose the advantages of having their customers use automatic bill paying (an example of a RECAP policy). This would be an example of a:

Which of the following is not a concern about nudge policies?

A good that people buy only to make them look better than their neighbors is called a:

The idea that a person wants to have a bigger house in order to outdo his or her neighbors is referred to as:

Focusing on how people actually behave is the main motivation behind ________ economics.

Paternalism leads people to:

Which type of model can account for all types of allocating and coordinating mechanisms, even those without explicit money prices?

Economic engineering:

A behavioral economist, in contrast to a traditional economist, would argue that one reason people have a hard time losing weight is that:

In economics, the context in which decisions are presented is referred to as:

Grocery stores often place items people buy on impulse at the checkout lane. This is an example of:

In Minnesota, tax collectors found that threatening late filers with warnings and fines does not increase tax compliance. Instead, they publicized the fact that most Minnesotans had already filled in their returns. What type of nudge is this?

Behavioral economists believe that people should smoke as many cigarettes as they want.