Questions from General Economics

Q: Which of the following are systematic errors? a. A

Which of the following are systematic errors? a. A colorblind person who repeatedly runs red lights. b. An accountant whose occasional math errors are sometimes on the high side and sometimes on the...

Q: Identify each statement as being associated with neoclassical economics or behavioral economics

Identify each statement as being associated with neoclassical economics or behavioral economics. a. People are eager and accurate calculators. b. People are often selfless and generous. c. People hav...

Q: Label each of the following behaviors with the correct bias or heuristic

Label each of the following behaviors with the correct bias or heuristic. a. Your uncle says that he knew all along that the stock market was going to crash in 2008. b. When Fred does well at work, h...

Q: Erik wants to save more, but whenever a paycheck arrives,

Erik wants to save more, but whenever a paycheck arrives, he ends up spending everything. One way to help him overcome this tendency would be to: LO4 a. Teach him about time inconsistency. b. Tell hi...

Q: Many proposers in the ultimatum game offer half to the responder with

Many proposers in the ultimatum game offer half to the responder with whom they are paired. This behavior could be motivated by (select as many as might apply): a. Fear that an unequal split might b...

Q: Discuss the political incentives that helped motivate federal politicians to approve budget

Discuss the political incentives that helped motivate federal politicians to approve budget deficits in all but five years between 1960 and 2015.

Q: Use the concepts of gross investment and net investment to distinguish between

Use the concepts of gross investment and net investment to distinguish between an economy that has a rising stock of capital and one that has a falling stock of capital. Explain: “Though net investmen...

Q: Bill spends his money on flowers and cookies so as to maximize

Bill spends his money on flowers and cookies so as to maximize his total utility. Both flowers and cookies start off costing $2 each. At that price, Bill buys three flowers and two cookies. When the p...

Q: One type of systematic error arises because people tend to think of

One type of systematic error arises because people tend to think of benefits in percentage terms rather than in absolute dollar amounts. As an example, Samir is willing to drive 20 minutes out of his...

Q: Anne is a bargain-minded shopper. Normally, her favorite

Anne is a bargain-minded shopper. Normally, her favorite toothpaste costs the same at both of her local supermarkets, but the stores are having competing sales this week. At one store, there is a bo...