Exam 22: Behavioral Economics and Modern Economic Policy

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

Behavioral economists have found that:

Having more money and a bigger house than other people is the key to happiness. Which economic approach is most consistent with this idea?

Shadow prices are designed to take into account:

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

If the government were to regulate the way AT&T presents its phone plans, such a policy would be a:

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?

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

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

What is a shadow price? Why is it advantageous to include shadow prices in economic models?

What do markets with prices, dormitory lotteries, and first-come-first-served rules have in common?

What is behavioral economic policy?

Why are decisions that are made infrequently difficult to make? Can you give an example?

To guide a person through complicated decisions such as whether to get a particular credit card, behavioral economists advocate electronic disclosure in which characteristics such as late fees and high interest rates would be explained clearly. They call this type of nudge a(n):

Traditional economists say that desires are inherent in people;what do behavioral economists say?

One reason economists began to look at more effective coordination mechanisms is that they began to:

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?

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 economic policy is likely to:

Can default options provide nudges? Why or why not?