Question 1

Modern traditional economics relies on complex models that are easy to test in real life.

Accepted Answer

A) True 
 B)False

Question 2

If an economist wanted to understand why people don't buy life insurance, he would want to use the deductive approach.

Accepted Answer

A) True 
 B)False

Question 3

The idea that small changes can render behavior or another complex system completely unpredictable is referred to as the:

Accepted Answer

A)  heuristic model. 
B)  path-dependent model. 
C)  butterfly effect model. 
D)  regression model. 
A)  heuristic model. 
B)  path-dependent model. 
C)  butterfly effect model. 
D)  regression model.

Question 4

A model that statistically discovers a pattern in the data is called a(n) ________ model.

Accepted Answer

A)  heuristic 
B)  traditional 
C)  empirical 
D)  butterfly effect 
A)  heuristic 
B)  traditional 
C)  empirical 
D)  butterfly effect

Question 5

Behavioral economists believe in modifying the assumption that people are rational and follow their own self-interest.

Accepted Answer

A) True 
 B)False

Question 6

The endowment effect is used to describe the mistake a consumer makes when he or she accounts for the monetary costs of his or her decisions but ignores the nonmonetary opportunity costs.

Accepted Answer

A) True 
 B)False

Question 7

To decide what is meant by enlightened self-interest, behavioral economists will:

Accepted Answer

A)  make their models more mathematically rigorous. 
B)  use the ceteris paribus assumption repeatedly. 
C)  use laboratory and field experiments. 
D)  base their models on induction. 
A)  make their models more mathematically rigorous. 
B)  use the ceteris paribus assumption repeatedly. 
C)  use laboratory and field experiments. 
D)  base their models on induction.

Modern traditional economics relies on complex models that are easy to test in real life.

If an economist wanted to understand why people don't buy life insurance, he would want to use the deductive approach.

The idea that small changes can render behavior or another complex system completely unpredictable is referred to as the:

A model that statistically discovers a pattern in the data is called a(n) ________ model.

Behavioral economists believe in modifying the assumption that people are rational and follow their own self-interest.

The endowment effect is used to describe the mistake a consumer makes when he or she accounts for the monetary costs of his or her decisions but ignores the nonmonetary opportunity costs.

To decide what is meant by enlightened self-interest, behavioral economists will:

Economics and Economic Reasoning

The Production Possibility Model, Trade, and Globalization

Economic Institutions

Supply and Demand

Using Supply and Demand

Describing Supply and Demand: Elasticities

Taxation and Government Intervention

Market Failure Versus Government Failure

Comparative Advantage, Exchange Rates, and Globalization

International Trade Policy

Production and Cost Analysis I

Production and Cost Analysis II

Perfect Competition

Monopoly and Monopolistic Competition

Oligopoly and Antitrust Policy

Real-World Competition and Technology

Work and the Labor Market

Who Gets What the Distribution of Income

The Logic of Individual Choice: the Foundation of Supply and Demand

Game Theory, Strategic Decision Making, and Behavioral Economics

Behavioral Economics and Modern Economic Policy

Microeconomic Policy, Economic Reasoning, and Beyond

Filters

Exam 21: Thinking Like a Modern Economist

Modern traditional economics relies on complex models that are easy to test in real life.

If an economist wanted to understand why people don't buy life insurance, he would want to use the deductive approach.

The idea that small changes can render behavior or another complex system completely unpredictable is referred to as the:

A model that statistically discovers a pattern in the data is called a(n) ________ model.

Behavioral economists believe in modifying the assumption that people are rational and follow their own self-interest.

The endowment effect is used to describe the mistake a consumer makes when he or she accounts for the monetary costs of his or her decisions but ignores the nonmonetary opportunity costs.

To decide what is meant by enlightened self-interest, behavioral economists will:

Economics and Economic Reasoning

The Production Possibility Model, Trade, and Globalization

Economic Institutions

Supply and Demand

Using Supply and Demand

Describing Supply and Demand: Elasticities

Taxation and Government Intervention

Market Failure Versus Government Failure

Comparative Advantage, Exchange Rates, and Globalization

International Trade Policy

Production and Cost Analysis I

Production and Cost Analysis II

Perfect Competition

Monopoly and Monopolistic Competition

Oligopoly and Antitrust Policy

Real-World Competition and Technology

Work and the Labor Market

Who Gets What the Distribution of Income

The Logic of Individual Choice: the Foundation of Supply and Demand

Game Theory, Strategic Decision Making, and Behavioral Economics

Behavioral Economics and Modern Economic Policy

Microeconomic Policy, Economic Reasoning, and Beyond

Filters