Exam 8: Behavioral Economics

Which of the following cognitive biases refers to people's tendency to attribute their successes to personal ability and effort,and failures to forces outside their control?

Which of the following supermarket strategies to increase sales would be most consistent with a behavioral economics (versus neoclassical economics)approach?

According to behavioral economics,temptation to make harmful decisions can be overcome by presenting decision makers with better information and more options.

Dictators/proposers tend act more self-interested when playing the dictator game versus the ultimatum game.

Which of the following is a key difference between the dictator game and the ultimatum game?

According to prospect theory,people tend to favor default options.This is known as the:

(Consider This)For people that use commitment contracts to motivate achievement of a goal,people have the choice of their penalty money (from failing to reach the goal)to go to either charities they like or charities they hate (anti-charities).From a behavioral economics perspective:

Behavioral economists avoid dealing with fairness concerns because the concept is too subjective.

Balin purchases fair trade cocoa out of concern for workers' rights and environmental sustainability.He could purchase cocoa of equal quality at a lower price.Behavioral economists would consider Balin's purchase:

The ultimatum game reveals that the threat of rejection:

(Last Word)Participation in company retirement savings programs has increased dramatically because:

When people convince themselves that they "knew all along" what was going to happen,when in fact their predictions were incorrect,they suffer from:

Recognition heuristics help advertisers gain customers.

Behavioral economists believe that people:

The presence of framing effects influences how sellers present their products to consumers.

(Last Word)"Nudges" refer to:

Susie knows that too many sugary treats,while delicious when eaten,have long-term adverse effects on weight and health.Based on this information,a neoclassic economist would expect Susie to:

Heuristics generally help people to make decisions faster,but also to make more errors.

According to prospect theory,what strategy will firms typically employ with regard to pricing and packaging of their goods,when faced with rising production costs?

Which of the following assumptions about human behavior is most likely to be accepted by behavioral economists?