12 Questions
What is the main reason policymakers should not interfere with markets?
Markets are self-correcting and can maintain maximal freedom.
What is the main purpose of 'nudges' in decision-making?
To help individuals address self-control issues in decisions involving delayed effects.
What is the main difference between social exchanges and market exchanges?
Market exchanges are always transparent, while social exchanges are not transparent.
What does the Ultimatum Game demonstrate about human behavior?
People are willing to sacrifice personal gain for equitable outcomes.
What is the main difference between the Ultimatum Game and the Dictator Game?
In the Ultimatum Game, recipients can reject offers, while in the Dictator Game, recipients must accept any non-zero offer.
What do distributional preferences consider in economic decisions?
Both personal and others' welfare.
What is the primary purpose of conducting experiments in causal inference?
To distinguish causality from mere correlation
What is the benefit of using random assignment in experiments?
It creates statistically equivalent groups, ensuring observed effects are due to the intervention
What is the focus of internal validity in experiments?
Ensuring the study's conclusions are well-grounded and free from alternative explanations
What is the libertariant paternalism concept used for?
To influence choices by altering the context in which decisions are made
What is the primary concern of external validity in experiments?
Ensuring the study's conclusions are relevant to other settings
What is the purpose of using random samples in experiments?
To ensure the results are generalizable to the broader population
Understand the purpose of experiments in establishing causality, the role of randomization, and types of randomization including random assignment and random sampling. Learn how to distinguish causality from correlation.
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