10 Questions
In the standard economic model, what is the assumption about how people behave?
They behave rationally and selfishly
What is 'Homo-economicus' in the standard economic model?
An actor who is rational and selfish
What does 'bounded rationality' take into account?
Limited computational capabilities
What are 'heuristics' in the context of decision-making?
Simple rules of thumb for decision-making
What can result from using simple heuristics in decision-making?
Cognitive bias
Which branch of neuroscience focuses on studying the brain while making economic decisions or evaluating economic outcomes?
Neuroeconomics
What methodology, advocated by Milton Friedman, suggests focusing on prediction rather than the assumptions of models?
Methodology of positive economics
Which hypothesis suggests that the standard economic model is a good predictor of outcomes in familiar situations?
Discovered preference hypothesis
In an experimental study, what is the term for deliberately misleading a subject about the purpose of the experiment?
Deception in experiments
What type of experiment requires that the experimenter does not know what treatment is being run during the experiment to avoid bias?
Double blind experiment
Test your understanding of standard economic models, behavioral economics, homo-economicus, and bounded rationality with this quiz based on Chapter 1 material. Explore the assumptions and deviations from the traditional standard model of economic behavior.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
