Exam 21: Thinking Like a Modern Economist

Science is justified through heuristic models.

The more complex a model is, the easier it is to arrive at a conclusion.

What two assumptions are traditional economists more likely to make compared to behavioral economists?

Models that that require knowledge of the relevant history to reach a conclusion are referred to as:

Relying on experiments and statistical analysis of real-world observations is the premise behind:

Behavioral economists want to:

An economist looks at data that suggests that people are making decisions that are based on rules of thumb. She concludes that people tend to make decisions that are based on habit and not on the economic decision rule. She is most likely a(n):

Which type of economists rely on the widest array of models?

If a teacher was curious to see if collaboration among students leads to higher grades, which of the following models would be the best to use?

For me to stop getting speeding tickets for a year, I gave five friends devices that measure my driving speed. If I drove over the speed limit by more than 5 miles per hour, I would have to pay them each $1,000. This would be an example of:

What is the glue that holds modern economics together?

If a model assumes that people take into account other people's interests, it is probably a:

After a hurricane, several gas stations decide to keep their gas prices at the prehurricane level. An economist who most likely believes that there has to be some rational reason for this behavior is more than likely a(n):

Which of the following models is best able to incorporate significant amounts of data?

Two economists are arguing about how to approach a problem. The first economist says, "Look, I can see in the data that consumption rises when income rises. We need to build a model with an equation that relates the two." The second economist responds, "I can see that is the case, but we have to understand why that is true before we build any equations, and then we will see what the model says about the relationship between the two." What kind of economist is the second one likely to be?

To allow heuristic models to provide us with a better understanding of economic problems, it is important to:

Behavioral economists support:

"Letting the data speak" in economics refers to:

"The problem of getting people to buy car insurance is best solved by the market." This belief belongs to which type of economist?

The smaller the coefficient of determination, the better the chance of every point being on the "best fit" line.