Question 1

Why do cereals marketers most prefer to have their brand occupy the shelf-space a foot or two below a typical adult's eye-level?

Accepted Answer

A)  Because they know that adults typically look down when they go by the store shelves.
B)  Because that shelf-space is the lowest priced space they could occupy.
C)  Because it's a lot easier to restock those shelf-spaces.
D)  Because they are targeting the children who go shopping with adults.E) A) and C)
F) A) and D)

Question 2

Anchoring leads people to consider irrelevant information when making decisions.

Accepted Answer

A) True 
 B)False

Question 3

According to behavioral economists, self-control problems

Accepted Answer

A)  are a rare aberration from rational decision making.
B)  are often caused by time inconsistency.
C)  can be easily overcome by providing decision makers with better information.
D)  occur frequently but have no impact on the ability of neoclassical models to predict economic outcomes.E) B) and D)
F) None of the above

Question 4

According to prospect theory, people tend to favor default options.This is known as the

Accepted Answer

A)  self-serving bias.
B)  availability heuristic.
C)  status quo bias.
D)  framing bias.E) B) and D)
F) B) and C)

Question 5

Internationally, participation differences in organ donation programs are mostly attributed to

Accepted Answer

A)  cultural views.
B)  financial compensation for organ donors.
C)  what default option is set for participation or nonparticipation.
D)  living standards as measured by per capita GDP.E) A) and B)
F) A) and C)

Question 6

Which of the following is the best example of a System 2 decision and action?

Accepted Answer

A)  Marty learns that his usual driving route to work will have significant delays due to construction but forgets and goes that way anyway.
B)  Doug eats a whole plate of nachos despite the fact it compromises his carefully planned diet.
C)  Bruce "goes with his gut" when choosing between two kinds of motorcycles to purchase.
D)  Chuck, who has contemplated a job change for a month and has other offers, chooses to quit when his boss makes him mad.E) All of the above
F) C) and D)

Question 7

Between System 1 and System 2 in the brain, System 1 makes most of the decisions.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements about the so-called "hedonic treadmill" is not true?

Accepted Answer

A)  It is a consequence of the fact that our brains are wired to notice changes rather than states.
B)  An increase in consumption level will give a permanent increase in happiness.
C)  It is the reason wh y people across a wide spectrum of incomes are found to be equally happy.
D)  A one-shot increase in income will, in the long run, not affect people's sense of satisfaction.E) B) and C)
F) A) and D)

Exam 8: Behavioral Economics

Which of the following is the best example of a System 2 decision and action?

Correct Answer
verified

Between System 1 and System 2 in the brain, System 1 makes most of the decisions.

Correct Answer
verified

Why do cereals marketers most prefer to have their brand occupy the shelf-space a foot or two below a typical adult's eye-level?

Correct Answer
verified

Which of the following statements about the so-called "hedonic treadmill" is not true?

Correct Answer
verified

Anchoring leads people to consider irrelevant information when making decisions.

Correct Answer
verified

According to behavioral economists, self-control problems

Correct Answer
verified

According to prospect theory, people tend to favor default options.This is known as the

Correct Answer
verified

Internationally, participation differences in organ donation programs are mostly attributed to

Correct Answer
verified

Exam 8: Behavioral Economics

Which of the following is the best example of a System 2 decision and action?

Correct AnswerverifiedShow Answer

Between System 1 and System 2 in the brain, System 1 makes most of the decisions.

Correct AnswerverifiedShow Answer

Why do cereals marketers most prefer to have their brand occupy the shelf-space a foot or two below a typical adult's eye-level?

Correct AnswerverifiedShow Answer

Which of the following statements about the so-called "hedonic treadmill" is not true?

Correct AnswerverifiedShow Answer

Anchoring leads people to consider irrelevant information when making decisions.

Correct AnswerverifiedShow Answer

According to behavioral economists, self-control problems

Correct AnswerverifiedShow Answer

According to prospect theory, people tend to favor default options.This is known as the

Correct AnswerverifiedShow Answer

Internationally, participation differences in organ donation programs are mostly attributed to

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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