Exam 8: Behavioral Economics

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 behavioral economist would expect Susie to:

Anchoring leads people to consider irrelevant information when making decisions.

Which of the following individuals least likely suffers from myopia?

Specialty shops can charge and get customers to pay higher prices for identical goods than they would pay in "big box" stores.Assuming that these differences are driven by store appearance rather than differences in services provided,which of the following best explains this phenomenon?

Which of the following statements best reflects behavioral economists' views on self-interest versus the interests of others?

The availability heuristic refers to people purchasing what is most easily accessible.

According to behavioral economists,self-control problems generally result from poor information.

Prospect theory and the work of behavioral economists confirm that consumers are economically rational.

Behavioral economics recognizes that people use System 1 to make decisions more often than they use System 2.Which of the following is an implication of that decision-making process?

According to behavioral economics,advertising works because it:

Internationally,participation differences in organ donation programs are mostly attributed to:

Heuristics generally help people make faster decisions.

According to behavioral economists,people tend to put too much weight on the future when they make decisions.

Neoclassical theory suggests that to the extent impulse buying occurs,it is infrequent and does not affect the ability of economic models to predict behavior.

For economists,"myopia" refers to:

Suppose Gina and Henry play two rounds of the ultimatum game.In the first round they play for $10;in the second round they play for $1,000.In the first round Gina suggests an 80/20 split ($8 to Gina,$2 to Henry),but Henry quickly rejects the offer as unfair.If in the second round Gina offers the same split ($800 to Gina,$200 to Henry),research by behavioral economists suggests that Henry will:

According to the "endowment effect:"

The overconfidence effect exists when people underestimate their chances of being wrong.

Time inconsistency refers to the phenomenon where your present self misjudges what your future self will do.

Which of the following individuals received a Nobel Prize in economics for his work in behavioral economics?