Microecon Ch.8 – Flashcards
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Regarding people's preferences, behavioral economists observe that these preferences are
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Fluid and easily influenced by framing
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When people make decisions that go against their own interests, neoclassical economics explains this to be instances where people are
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Ignorant of what their best interests are
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Behavioral economists have discovered the following things about people's reaction to losses
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People experience increasing marginal disutility from losses
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Some people's tendency to believe that they are better than average at making judgments or opinions is called the
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Overconfidence effect
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Many economists believe that the neoclassical theories of human behavior and the insights being accumulated in behavioral economics are basically
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Complementary to one another
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Behavioral economics attempts to make better predictions about human behavior by combining insights from the following fields, except:
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Physics
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Scientists studying human behavior have found that people tend to
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Make systematic errors in their decisions
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The following statements about behavioral economics are true, except
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It assumes that people are always rational, deliberate, and objective in their choices
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Myopia means
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A higher concern for the present
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So-called precommitments are effective ways of fighting
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Self-control problems
