Question 1

The Laffer curve specifies a tax rate in which people are motivated to work and maximizes tax revenue.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following describes the study of how economic decisions are influenced by psychological factors

Accepted Answer

A)  behavioral economics 
B)  prospect theory 
C)  rational economic thinking 
D)  irrational economic thinking 
A)  behavioral economics 
B)  prospect theory 
C)  rational economic thinking 
D)  irrational economic thinking

Question 3

Which of the following would explain why the risk of losing money would keep someone from investing in the stock market

Accepted Answer

A)  rational economic thinking 
B)  prospect theory 
C)  bounded rationality 
D)  loss aversion 
A)  rational economic thinking 
B)  prospect theory 
C)  bounded rationality 
D)  loss aversion

Question 4

What is an assumption of the standard economic model

Accepted Answer

A)  People are always rational. 
B)  People are usually irrational. 
C)  People are affected by losses rather than gains. 
D)  People rarely adhere to supply and demand. 
A)  People are always rational. 
B)  People are usually irrational. 
C)  People are affected by losses rather than gains. 
D)  People rarely adhere to supply and demand.

Question 5

Which of the following describes the tendency for potential losses to be more psychologically influential that potential gains

Accepted Answer

A)  loss aversion 
B)  prospect theory 
C)  bounded rationality 
D)  rational economic thinking 
A)  loss aversion 
B)  prospect theory 
C)  bounded rationality 
D)  rational economic thinking

Question 6

Behavioral game theory postulates that lowering taxes can increase tax revenues.

Accepted Answer

A) True 
 B)False

Question 7

With which of the following is the Laffer curve associated

Accepted Answer

A)  bounded rationality 
B)  loss aversion 
C)  supply side economics 
D)  internal values 
A)  bounded rationality 
B)  loss aversion 
C)  supply side economics 
D)  internal values

Question 8

Which of the following describes that there is a limit to our ability to make rational economic decisions

Accepted Answer

A)  rational economic thinking 
B)  prospect theory 
C)  behavioral economics 
D)  bounded rationality 
A)  rational economic thinking 
B)  prospect theory 
C)  behavioral economics 
D)  bounded rationality

Question 9

Behavioral economics was born in the aftermath of which war

Accepted Answer

A)  World War I 
B)  World War II 
C)  Vietnam 
D)  Korean War 
A)  World War I 
B)  World War II 
C)  Vietnam 
D)  Korean War

Question 10

The economic debate is actually a ______ challenge.

Accepted Answer

A)  loss aversion 
B)  rational 
C)  standard economic model 
D)  psychological 
A)  loss aversion 
B)  rational 
C)  standard economic model 
D)  psychological

Question 11

Corrigan is creating a study researching whether close personal relationships influence whether people choose to cooperate or compete for financial gains. Which of the following could Corrigan use in his study

Accepted Answer

A)  the Prisoner's Dilemma 
B)  the Ultimatum game 
C)  rational economic thinking 
D)  prospect theory 
A)  the Prisoner's Dilemma 
B)  the Ultimatum game 
C)  rational economic thinking 
D)  prospect theory

Question 12

Game theory can force our ______ to the surface of behavior by creating scenarios with uncertain outcomes.

Accepted Answer

A)  loss aversion 
B)  irrational economic thinking 
C)  internal values 
D)  bounded rationality 
A)  loss aversion 
B)  irrational economic thinking 
C)  internal values 
D)  bounded rationality

Question 13

How did the Treaty of Versailles after World War I influence the formation of behavioral economics?

Accepted Answer

The Treaty of Versailles, signed in 1919

Question 14

What is the belief that lowering taxes can actually increase tax revenues

Accepted Answer

A)  behavioral economics 
B)  prospect theory 
C)  supply side economics 
D)  game theory 
A)  behavioral economics 
B)  prospect theory 
C)  supply side economics 
D)  game theory

Question 15

Standard game theory is based on the behavioral economic model.

Accepted Answer

A) True 
 B)False

Question 16

You have been in a serious relationship for 5 years and are considering proposing to your partner. Which of the following is an action that you might choose according to standard game theory

Accepted Answer

A)  You propose because a rejection will not cost you much money. 
B)  You put off proposing because of potential rejection. 
C)  You propose because your love for your partner outweighs the potential pain of rejection. 
D)  You put off proposing because you will feel humiliated if you are rejected. 
A)  You propose because a rejection will not cost you much money. 
B)  You put off proposing because of potential rejection. 
C)  You propose because your love for your partner outweighs the potential pain of rejection. 
D)  You put off proposing because you will feel humiliated if you are rejected.

Question 17

Which of the following describes how people make predictable mistakes when trying to weigh outcomes and probabilities

Accepted Answer

A)  prospect theory 
B)  rational economic thinking 
C)  bounded rationality 
D)  irrational economic thinking 
A)  prospect theory 
B)  rational economic thinking 
C)  bounded rationality 
D)  irrational economic thinking

Question 18

Psychology did not exist when economic philosophy was created.

Accepted Answer

A) True 
 B)False

Question 19

Sebastian is a negotiator for a large retail chain. During a negotiation for the best rate on pants, he gets into a heated argument with a supplier. Even though this supplier provides the highest quality, lowest cost pants, Sebastian refuses to do business with them and buys the pants for a more expensive rate elsewhere. What does this exemplify

Accepted Answer

A)  prospect theory 
B)  rational economic thinking 
C)  irrational economic thinking 
D)  bounded rationality 
A)  prospect theory 
B)  rational economic thinking 
C)  irrational economic thinking 
D)  bounded rationality

Question 20

Which of the following describes how thoughts are influenced by mental shortcuts, misperception, and emotional biases

Accepted Answer

A)  loss aversion 
B)  irrational economic thinking 
C)  rational economic thinking 
D)  prospect theory 
A)  loss aversion 
B)  irrational economic thinking 
C)  rational economic thinking 
D)  prospect theory

Exam 17: Social Psychology and Behavioral

The Laffer curve specifies a tax rate in which people are motivated to work and maximizes tax revenue.

Which of the following describes the study of how economic decisions are influenced by psychological factors

Which of the following would explain why the risk of losing money would keep someone from investing in the stock market

What is an assumption of the standard economic model

Which of the following describes the tendency for potential losses to be more psychologically influential that potential gains

Behavioral game theory postulates that lowering taxes can increase tax revenues.

With which of the following is the Laffer curve associated

Which of the following describes that there is a limit to our ability to make rational economic decisions

Behavioral economics was born in the aftermath of which war

The economic debate is actually a ______ challenge.

Corrigan is creating a study researching whether close personal relationships influence whether people choose to cooperate or compete for financial gains. Which of the following could Corrigan use in his study

Game theory can force our ______ to the surface of behavior by creating scenarios with uncertain outcomes.

How did the Treaty of Versailles after World War I influence the formation of behavioral economics?

What is the belief that lowering taxes can actually increase tax revenues

Standard game theory is based on the behavioral economic model.

You have been in a serious relationship for 5 years and are considering proposing to your partner. Which of the following is an action that you might choose according to standard game theory

Which of the following describes how people make predictable mistakes when trying to weigh outcomes and probabilities

Psychology did not exist when economic philosophy was created.

Which of the following describes how thoughts are influenced by mental shortcuts, misperception, and emotional biases

An Introduction to Social Psychology

Research Methods

The Social Self

Social Cognition

Person Perception

Attitudes and Persuasion

Social Influence: Conformity, Social Roles, and Obedience

Group Processes

Stereotyping, Prejudice, and Discrimination

Helping Prosocial Behavior

Aggression

Intimate Relationships

Social Psychology and a Sustainable Environment

Social Psychology of Law and the Courtroom

Social Psychology of Stress and Health

Social Psychology and Happiness: Positive

Social Psychology and Relationship Violence

Social Psychology of Work: Industrialorganizational Psychology

Social Psychology of Volunteerism and Internships

Social Psychology and Personal Finance

Social Psychology and Forgiveness

Filters