Exam 18: Social Economics

Melanie is a reporter.She is writing an article on a certain issue.She,however,has interviewed only those people who have the same opinion as she does on that particular issue.This is an example of ________ bias.

Why do people donate less when it is costlier to give?

Stephanie wants to buy a laptop.She has chosen a particular model.However,before ordering it online,she decides to read some of the user reviews provided on the Web site.She overlooks negative feedback by some users and focuses only on positive feedback.This is an example of ________ bias.

Most charitable contributions in the United States are usually given to ________.

Voters are often influenced by opinion polls.They end up voting for the party that is likely to win according to the opinion poll.This occurs because of ________.

John started going to soccer matches after moving in with a roommate who is a huge fan of soccer.This is an example of ________.

Scenario: Elly owns a small coffee shop. She has only one employee. One weekend, she decides to take a break from work. She is wondering whether she should trust her employee to run the shop in her absence. If she does not trust him, she would have to keep the shop closed, in which case neither she nor her employee will be able to make money. In contrast, if she trusts him, he can either cooperate and run the shop or he can defect and steal from the shop. If he cooperates, both of them will earn money. If he steals from the shop, he will make more money while she will lose. -Refer to the scenario above.Which of the following will happen in this case?

La Dila Corp.decided to sponsor an AIDS awareness campaign when it discovered that its rival had been sponsoring several fundraising events for AIDS-afflicted children.This is an example of ________.

Scenario: Two colleagues-Mathew and Peter-have successfully completed a project, and their employer has decided to reward them in a unique way. Each of them is taken to a separate room and asked to choose whether the other colleague is a good teammate or a bad teammate. They are told that if both of them choose "bad," they will not get any reward. If both of them choose "good," they will get $5,000 each. If one chooses "good" while the other chooses "bad," the one who chooses "bad" will get $10,000 and the one who chooses "good" will not get anything. -Refer to the scenario above.If the players have to pay a fairness penalty of $7,000,________.

Scenario: You are playing a game of "Friend or Foe?" You and your classmate are taken to two different rooms and asked to choose whether the other is a friend or foe. You are told that if both of you choose "friend," you will get $10 each. However, if both of you choose "foe," neither of you will get anything. If one of you chooses "friend" while the other chooses "foe," the one who chooses "foe" will get $20, while the one who chooses "friend" will get nothing. -Refer to the scenario above.If there is fairness penalty of $12,________.

People giving to charity because they value helping others is categorized as ________.

Scenario: You walk onto a used car lot to buy a car. You are willing to pay up to $15,000 for a car of good quality, but you value a lemon at $0. You are now wondering whether you should trust the car dealer when it comes to the quality of his cars. If you choose to trust him, he can choose to cooperate or defect. If you do not trust him, he will not earn any money and you will not be able to buy a car. If you trust him and he cooperates, both of you will gain, because the dealer values a good-quality car at $13,000. However, if he defects, he will earn $15,000, while you will not derive any satisfaction. -Refer to the scenario above.Which of the following will happen in equilibrium if the car dealer has a reputation for trustworthiness?

Economists call the influences of the decisions of others on our decisions ________.

Mark and Anthony are participating in a trust game.Mark is given a locked box containing five $100 bills and a key.He can either unlock the box himself,or he can give it to Anthony.Anthony can either unlock the box himself,or return it to the moderator of the game.If Mark unlocks the box himself,he will get $200 and Anthony will get $100,while the rest will be taken back.If Anthony unlocks the box,they will receive $250 each.If Anthony returns the box to the moderator,he will receive $300,while Mark will not get any money.What will the equilibrium outcome of this game be?

There are two players in a game.In each round of the game,one player has to trust the other for a particular task.In the first round,Player 1 has to decide whether she will trust Player 2.If she does not trust Player 2,she will get one-third of the prize money,while Player 2 will get the rest of the prize money.If she trusts Player 2,Player 2 can either cooperate with her or defect.If Player 2 defects,Player 1 will earn $0,while Player 2 will get the entire prize money.If Player 2 cooperates,each of them will get half the prize money.What will the equilibrium outcome of this game be if Player 1 can impose a guilt penalty of two-thirds of the prize money and is known to be a vengeful player?

What role do social networking Web sites play in creating confirmation bias among users?

Scenario: Jack and Jill are siblings. Jack's father asked him how much money he would offer Jill if he gives him $50 as pocket money. He also told Jack that if Jill refuses the offer Jack makes, neither of them will get any money. -Refer to the scenario above.This is an example of ________.

Scenario: Elly owns a small coffee shop. She has only one employee. One weekend, she decides to take a break from work. She is wondering whether she should trust her employee to run the shop in her absence. If she does not trust him, she would have to keep the shop closed, in which case neither she nor her employee will be able to make money. In contrast, if she trusts him, he can either cooperate and run the shop or he can defect and steal from the shop. If he cooperates, both of them will earn money. If he steals from the shop, he will make more money while she will lose. -Refer to the scenario above.Elly should use ________ to make her decision.

Scenario: Two colleagues-Mathew and Peter-have successfully completed a project, and their employer has decided to reward them in a unique way. Each of them is taken to a separate room and asked to choose whether the other colleague is a good teammate or a bad teammate. They are told that if both of them choose "bad," they will not get any reward. If both of them choose "good," they will get $5,000 each. If one chooses "good" while the other chooses "bad," the one who chooses "bad" will get $10,000 and the one who chooses "good" will not get anything. -Refer to the scenario above.Which of the following is true?

William was asked to contribute money for a retirement home.He agreed to contribute only if his name appeared on the list of donors in the newsletter published by the home every year.This is an example of ________.