Question 1

Google and Yahoo internet search engines are examples of:

Accepted Answer

A) free market pricing models. 
B) government-implemented models. 
C) coordinating mechanism designs. 
D) auction markets. 
A) free market pricing models. 
B) government-implemented models. 
C) coordinating mechanism designs. 
D) auction markets.

Question 2

What is choice architecture? What role would this concept play in the formation of behavioral economic policy?

Accepted Answer

Choice architecture is the context in wh

Question 3

On the forms to open a checking account, automatic bill paying is often the default option, with a box to check if one wants to opt out. This is an example of a:

Accepted Answer

A) push. 
B) nudge. 
C) shadow price. 
D) flawed assumption. 
A) push. 
B) nudge. 
C) shadow price. 
D) flawed assumption.

Question 4

Which philosophy supports the idea that people should be free to make their own decisions?

Accepted Answer

A) Communist 
B) Libertarian 
C) Fascist 
D) Traditional 
A) Communist 
B) Libertarian 
C) Fascist 
D) Traditional

Question 5

What feature of the traditional model directs many traditional economists to support the precept of laissez-faire?

Accepted Answer

In traditional economics,voluntary trade

Question 6

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:

Accepted Answer

A) push. 
B) nudge. 
C) shadow price. 
D) flawed assumption. 
A) push. 
B) nudge. 
C) shadow price. 
D) flawed assumption.

Question 7

What is the incentive compatibility problem? Does the traditional supply/demand model exhibit this problem? Explain.

Accepted Answer

The incentive compatibility problem is o

Question 8

How do traditional economists feel about behavioral economic policy? What are three concerns that these economists have about the use of nudge and push policies?

Accepted Answer

Traditional economists argue that accept

Question 9

Combining the idea of freedom from constraint with well-intentioned guidance leads to:

Accepted Answer

A) purposeful behavior. 
B) incentive compatibility problems. 
C) libertarian paternalism. 
D) market failure. 
A) purposeful behavior. 
B) incentive compatibility problems. 
C) libertarian paternalism. 
D) market failure.

Question 10

One way to raise the money price of throwing a bean-ball (a pitch aimed at the batter's head)is to:

Accepted Answer

A) institute a fine for bean-balls. 
B) eliminate designated hitters. 
C) add designated hitters to the National League. 
D) allow batters hit by balls to walk. 
A) institute a fine for bean-balls. 
B) eliminate designated hitters. 
C) add designated hitters to the National League. 
D) allow batters hit by balls to walk.

Question 11

Give two examples of the use of the insights of behavioral economics by online retailers.

Accepted Answer

There are other possible answe

Question 12

Why are decisions where costs and benefits are separated by time difficult to make? Can you give an example?

Accepted Answer

These decisions are difficult to make be

Question 13

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

Accepted Answer

A) people prefer to eat sweets and fatty foods and therefore are making an optimal choice. 
B) the cost of losing weight (exercising and eating less)must be incurred now, whereas the benefit (being thinner)isn't enjoyed till later. 
C) fatty and sweet foods cost more than healthy foods in general, and therefore people buy more sweet and fatty foods. 
D) we live in a sedentary society with little opportunity for rigorous exercise. 
A) people prefer to eat sweets and fatty foods and therefore are making an optimal choice. 
B) the cost of losing weight (exercising and eating less)must be incurred now, whereas the benefit (being thinner)isn't enjoyed till later. 
C) fatty and sweet foods cost more than healthy foods in general, and therefore people buy more sweet and fatty foods. 
D) we live in a sedentary society with little opportunity for rigorous exercise.

Question 14

Behavioral mechanism design economists face which of the following problems when solving policy issues?

Accepted Answer

A) How much mathematics to include in the model, an issue only behavioral economists face 
B) How to find the right combination of market, social, and moral incentives that will achieve a goal 
C) How to find the right combination of social and moral incentives but without considering prices 
D) How to convince people that their approach to policy issues will work, an issue only behavioral economists face 
A) How much mathematics to include in the model, an issue only behavioral economists face 
B) How to find the right combination of market, social, and moral incentives that will achieve a goal 
C) How to find the right combination of social and moral incentives but without considering prices 
D) How to convince people that their approach to policy issues will work, an issue only behavioral economists face

Question 15

Taxing cigarettes is:

Accepted Answer

A) an example of an information nudge. 
B) an example of an advantageous default option nudge. 
C) an example of a pricing nudge. 
D) not a nudge. 
A) an example of an information nudge. 
B) an example of an advantageous default option nudge. 
C) an example of a pricing nudge. 
D) not a nudge.

Question 16

Are people from market-oriented societies generally more or less moral? Why is that?

Accepted Answer

They are generally more moral.Sam Bowles

Question 17

All markets:

Accepted Answer

A) distribute according to need. 
B) have money prices. 
C) are a type of coordination mechanism. 
D) are laissez-faire. 
A) distribute according to need. 
B) have money prices. 
C) are a type of coordination mechanism. 
D) are laissez-faire.

Question 18

What is the criterion of libertarian paternalism? Does a "nudge policy" meet this criterion?

Accepted Answer

The criterion of libertarian paternalism

Question 19

If workers enroll in a savings plan and are asked to check a box to opt out of it, we are seeing an example of a nudge involving the:

Accepted Answer

A) enlightened option. 
B) information option. 
C) default option. 
D) incentive compatibility problem. 
A) enlightened option. 
B) information option. 
C) default option. 
D) incentive compatibility problem.

Question 20

If crafting economic policy is difficult,can policy makers be "nudged" in a way that will help them?

Accepted Answer

Yes,and that nudge is provided

Exam 22: Behavioral Economics and Modern Economic Policy

Google and Yahoo internet search engines are examples of:

What is choice architecture? What role would this concept play in the formation of behavioral economic policy?

On the forms to open a checking account, automatic bill paying is often the default option, with a box to check if one wants to opt out. This is an example of a:

Which philosophy supports the idea that people should be free to make their own decisions?

What feature of the traditional model directs many traditional economists to support the precept of laissez-faire?

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:

What is the incentive compatibility problem? Does the traditional supply/demand model exhibit this problem? Explain.

How do traditional economists feel about behavioral economic policy? What are three concerns that these economists have about the use of nudge and push policies?

Combining the idea of freedom from constraint with well-intentioned guidance leads to:

One way to raise the money price of throwing a bean-ball (a pitch aimed at the batter's head)is to:

Give two examples of the use of the insights of behavioral economics by online retailers.

Why are decisions where costs and benefits are separated by time difficult to make? Can you give an example?

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

Behavioral mechanism design economists face which of the following problems when solving policy issues?

Taxing cigarettes is:

Are people from market-oriented societies generally more or less moral? Why is that?

All markets:

What is the criterion of libertarian paternalism? Does a "nudge policy" meet this criterion?

If workers enroll in a savings plan and are asked to check a box to opt out of it, we are seeing an example of a nudge involving the:

If crafting economic policy is difficult,can policy makers be "nudged" in a way that will help them?

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

Thinking Like a Modern Economist

Microeconomic Policy, Economic Reasoning, and Beyond

Economic Growth, Business Cycles, and Unemployment

Measuring and Describing the Aggregate Economy

The Keynesian Short-Run Policy Model: Demand-Side Policies

The Classical Long-Run Policy Model: Growth and Supply-Side Policies

The Financial Sector and the Economy

Monetary Policy

Financial Crises, Panics, and Unconventional Monetary Policy

Deficits and Debt: the Austerity Debate

The Fiscal Policy Dilemma

Jobs and Unemployment

Inflation, Deflation, and Macro Policy

International Financial Policy

Macro Policy in a Global Setting

Structural Stagnation and Globalization

Macro Policy in Developing Countries

Filters