Microeconomics
11th Edition
ISBN: 9781260507041
Author: Colander, David
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Question
Chapter 22, Problem 4QAP
To determine
Determine the risks that nudge policy pose for using cultural norms to affect the behavior of those people who have comparatively less power.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Peer pressure is an important influence on the behavior of youngsters. For instance, many preteens begin smoking because their friends pressure them into being “cool” by smoking. Using utility theory, how would you explain peer pressure? How would this compare with the explanations provided by behavioral economics and neuroeconomics?
Do you believe in the principles of behavioral economics as the new way to guide economic thought and theory or are the fundamentals of traditional economics(eg. Efficient Markets Hypothesis) a necessary baseline which enables us to then understand deviations from rationality? Why?
Give two examples of both real-life irrationality (behavioral economics) and rationality (traditional economics).
What 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.
Chapter 22 Solutions
Microeconomics
Ch. 22.1 - Prob. 1QCh. 22.1 - Prob. 2QCh. 22.1 - Prob. 3QCh. 22.1 - Prob. 4QCh. 22.1 - Prob. 5QCh. 22.1 - Prob. 6QCh. 22.1 - Prob. 7QCh. 22.1 - Prob. 8QCh. 22.1 - Prob. 9QCh. 22.1 - Prob. 10Q
Ch. 22 - Prob. 1QECh. 22 - Prob. 2QECh. 22 - Prob. 3QECh. 22 - Prob. 4QECh. 22 - Prob. 5QECh. 22 - Prob. 6QECh. 22 - Prob. 7QECh. 22 - Prob. 8QECh. 22 - Prob. 9QECh. 22 - Prob. 10QECh. 22 - Prob. 11QECh. 22 - Prob. 12QECh. 22 - Prob. 13QECh. 22 - Prob. 14QECh. 22 - Prob. 15QECh. 22 - Prob. 16QECh. 22 - Prob. 17QECh. 22 - Prob. 18QECh. 22 - Prob. 19QECh. 22 - Prob. 20QECh. 22 - Prob. 21QECh. 22 - Prob. 22QECh. 22 - Prob. 23QECh. 22 - Prob. 24QECh. 22 - Prob. 25QECh. 22 - Prob. 26QECh. 22 - Prob. 1QAPCh. 22 - Prob. 2QAPCh. 22 - Prob. 3QAPCh. 22 - Prob. 4QAPCh. 22 - Prob. 1IPCh. 22 - Prob. 2IPCh. 22 - Prob. 3IPCh. 22 - Prob. 4IPCh. 22 - Prob. 5IPCh. 22 - Prob. 6IP
Knowledge Booster
Similar questions
- Behavioral economics Indicate whether each of the following examples of behavior is consistent with the way the traditional economic framework suggests people should act, or whether it is reserved for behavioral economists to examine. Reserved for Consistent with the Predictions of Behavioral Example Traditional Economic Models Economics Some people care about how much money they make relative to other people rather than their absolute level of income. Some people would be willing to make a large sacrifice in order to help a loved one. Some people treat $55 they earn differently from $55 they win in a random drawing. Some people choose to work fewer hours after receiving a raise at work.arrow_forwardIndicate whether each of the following examples of behavior is consistent with the way the traditional economic framework suggests people should act, or whether it is reserved for behavioral economists to examine. Consistent with the Predictions of Traditional Reserved for Behavioral Economics Example Economic Models Some people treat $80 they earn differently from $80 they receive as a gift. Some people would be willing to pay money to lower the incomes of others. Some people sacrifice disposable income to help their children pay for college. Some people choose to work fewer hours after receiving a raise at work.arrow_forwardSuppose you are designing an intervention to increase daily physical activity among adults. Describe how you would draw on concepts from behavioral economics to design the intervention.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_forwardwhy is behavioral economic beliefs better than traditional economicarrow_forwardWhy do economic agents always respond to incentivesarrow_forward
- Economics CHOOSE THE CORRECT ANSWER. Remember that in the equilibrium prediction of an ultimatum game, the Proposer will offer the smallest non-zero amount of money possible. First-year Commerce students were asked to play an Ultimatum game where a choice had to be made over the division of R100. Offers could only be made in R10 increments, and the results of the various offers made are reported in the table below. Amount offered by Proposer RO R10 R20 R30 R40 R50 Proportion rejected 100% 60% 50% 30% 10% 0% What is the equilibrium split of the R100 between the Proposer and the Responder? O A. Proposer: R50, Responder: R50 O B. Proposer: R10, Responder: R90 O C. Proposer: R90, Responder: R10 O D. Proposer: R60, Responder: R40 O E. Proposer: R40, Responder: R60arrow_forwardSuppose that the economy is characterized by the following behavioral equations: C= 180 + 0.7Y /= 130 G = 150 T= 100 Equilibrium output (Y) = 1300 - (Round your response to the nearest integer.) Total demand (Z) =| (Round your response to the nearest integer.)arrow_forwardIndicate whether each of the following examples of behavior is consistent with the utility-maximization framework of traditional economics or is better explained by concepts developed by behavioral economists. Example Consistent with the Predictions of Traditional Economic Theory More Effectively Addressed by Behavioral Economics There are people who pursue a degree in theater rather than engineering, even though engineering careers are usually much higher-paying. Some people treat $55 they earn differently from $55 they win in a random drawing. Some people would pay money to lower the incomes of others. People at all-you-can-eat restaurants eventually leave, even though they could continue eating for free.arrow_forward
- Can i get help?arrow_forwardWhat do you think of the ethics of using unconscious nudges to alter people’s behavior? Before you answer, consider the following argument made by economists Richard Thaler and Cass Sunstein, who favor the use of nudges. They argue that in most situations, we couldn’t avoid nudging even if we wanted to because whatever policy we choose will contain some set of unconscious nudges and incentives that will influence people. Thus, they say, we might as well choose the wisest set of nudges.arrow_forwardWhat is loss aversion? Explain how the topic is related to behavioral economics? Give at least two examples.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning