Microecon Ch.8 – Flashcards

Unlock all answers in this set

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