Study Guide for Microeconomics
9th Edition
ISBN: 9780134741123
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Question
Chapter 19, Problem 6RQ
To determine
The framing
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Students have asked these similar questions
Behavioral economics helps explain: which of the following?????????????
a)why people are rational.
b)why people are selfish.
c)why being selfish is rational.
d)the degree to which people are altruistic.
Give typing answer with explanation and conclusion
Explain behavioral economic belief
When a person buys a more fuel-efficient car or air conditioner, we often observe them using it more intensively. As a result of this behavioral response, the reduction in energy consumption is partially undone. Economists refer to this behavioral phenomenon as:
Select one:
a. Additionality.
b. Leakage.
c. The rebound effect.
d. Slippage.
Chapter 19 Solutions
Study Guide for Microeconomics
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Similar questions
- An economics professor finds that he strictly prefers a $10 bottle of wine over an $8 bottle, and a $12 bottle over a $10 bottle, and so on, but an $8 bottle over a $200 bottle. Explain why this makes him irrational according to a behavioral economics theory.arrow_forwardIn Behavioral Economics, what does it mean to say that people like to “play with the house’s money”? What is wrong with that phrase?arrow_forwardWhy do behavioral economists consider it helpful to base a theory of economic behavior on the actual mental processes that people use to make decisions? Why do neoclassical economists not care about whether a theory incorporates those actual mental processes?arrow_forward
- Behavioral economics incorporates insights from which other field of study? A. Psychology B. Political science C. Sociology D. Anthropologyarrow_forwardA student finds that his purchase of drawing pencils for art class is directly related to the amount of art paper he buys. According to behavioral economics, these art supplies would be classified as A. complements. B. independents. C. alternatives. D. substitutes.arrow_forwardWhat does behavioral economics have to say about each of the following statements? a. “Nobody is truly charitable—they just give money to show off.” b. “America has a ruthless capitalist system. Considerations of fairness are totally ignored.” c. “Selfish people always get ahead. It’s like nobody even notices!”arrow_forward
- Identify a personal economic decision that was driven by a behavioral bias rather than by pure rational behavior. Given your understanding of behavioral economics, how would your decision differ today? Please provide a detailed discussion. I will not give a positive rating for vague responses.arrow_forwardAccording to behavioral economics, consumers A. do not always behave rationally because they fail to ignore sunk costs. B. always behave rationally because they account for sunk costs. C. always behave rationally because they take into account monetary costs and nonmonetary opportunity costs. D. do not always behave rationally because they take into account nonmonetary opportunity costs. E. do not always behave rationally because they accurately project their future behavior.arrow_forwardBased on several observations, people at older ages tend to buy more luxurious products than when they were younger. Does this mean that diminishing marginal utility of money declines as people age?arrow_forward
- Explain two or more of the behavioral economics concepts listed below and give an example of each Response Parameters Perhaps you can provide a link to a graphic or a video that enhances your discussion. Concepts: Confirmation bias, overconfidence effect, hindsight bias, availability heuristic, planning fallacy, framing effects, anchoring, endowment effect, status quo effectarrow_forwardWhat is the goal of behavioral economics? Group of answer choices To eliminate the consumers’ state of mind from consideration in economic analysis. To shift economic theory from a mathematical base to more of a psychological study. To integrate the insights of psychology into economics to enrich our understanding of decision-making. To study consumer behavior over time rather than behavior in the moment and integrate these insights in economic analysis.arrow_forwardCritically discuss whether maximising behaviour or satisficing behaviour is the best way to explain consumer behaviourarrow_forward
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