Podcast
Questions and Answers
Which of the following statements best captures the essence of economic analysis?
Which of the following statements best captures the essence of economic analysis?
Which of the following is not an example of an economic incentive?
Which of the following is not an example of an economic incentive?
Which of the following correctly explains why the number of late pickups actually rose when a monetary fine was imposed?
Which of the following correctly explains why the number of late pickups actually rose when a monetary fine was imposed?
In which of the following situations would a moral incentive be more effective than a modest economic incentive?
In which of the following situations would a moral incentive be more effective than a modest economic incentive?
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Which of the following explains why people are willing to give more blood with only a moral incentive than with cash?
Which of the following explains why people are willing to give more blood with only a moral incentive than with cash?
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From an economic perspective, the incentive to cheat will be greatest when:
From an economic perspective, the incentive to cheat will be greatest when:
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Some school teachers cheat because:
Some school teachers cheat because:
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Which of the following incentives associated with high-stakes testing would contribute most to a student's learning?
Which of the following incentives associated with high-stakes testing would contribute most to a student's learning?
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From a teacher's perspective, the knowledge that teacher cheating is rarely looked for and hardly ever punished has the effect of:
From a teacher's perspective, the knowledge that teacher cheating is rarely looked for and hardly ever punished has the effect of:
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Assume 50 students take the same multiple-choice exam. Which of the following would be least likely to suggest some form of cheating took place?
Assume 50 students take the same multiple-choice exam. Which of the following would be least likely to suggest some form of cheating took place?
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Which of the following is not a distinguishing characteristic of the typical teacher who was caught cheating in the Chicago school system?
Which of the following is not a distinguishing characteristic of the typical teacher who was caught cheating in the Chicago school system?
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It's difficult to document cheating among sumo wrestlers in Japan because:
It's difficult to document cheating among sumo wrestlers in Japan because:
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A sumo wrestler has the greatest incentive to cheat during a tournament when:
A sumo wrestler has the greatest incentive to cheat during a tournament when:
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In which of the following scenarios would cheating in a sumo match be most likely to occur?
In which of the following scenarios would cheating in a sumo match be most likely to occur?
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Referring to the previous question, cheating most likely occurs in the scenario you selected because:
Referring to the previous question, cheating most likely occurs in the scenario you selected because:
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What incentive would a sumo wrestler with a winning record in a tournament have to help an opponent who is 'on the bubble'?
What incentive would a sumo wrestler with a winning record in a tournament have to help an opponent who is 'on the bubble'?
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Which of the following characteristics distinguishes white-collar crime from street crime?
Which of the following characteristics distinguishes white-collar crime from street crime?
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Using economic principles, how can we explain why a particular individual would be more likely to steal from someone they don't know than from someone they know and like?
Using economic principles, how can we explain why a particular individual would be more likely to steal from someone they don't know than from someone they know and like?
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Study Notes
Economic Analysis Concepts
- Economic analysis fundamentally revolves around the principle that incentives matter.
- Examples of economic incentives include fines, taxes, and commissions for salespeople, contrasting with non-economic incentives like moral obligations.
Behavior Influence by Monetary Incentives
- Monetary fines can paradoxically lead to increased undesirable behaviors, as seen with late pickups at day care when fines are perceived as lesser than moral costs.
- Situations that trigger moral incentives, such as a politician considering an illicit affair, illustrate how ethics can overpower economic factors.
Cheating Incentives
- Cheating is most likely when the expected benefits of cheating significantly outweigh the expected costs.
- High-stakes testing environments, where teachers may be incentivized to manipulate scores, showcase the pressures that lead to unethical choices in education.
Cheating Detection
- Some indicators of cheating on tests include uniform high performance in large groups, whereas a random spread of correct answers suggests less likelihood of misconduct.
- Characteristics of teachers caught cheating often include working in low-performing schools, long teaching tenures, and more.
Sumo Wrestling Dynamics
- Sumo wrestlers face unique incentives related to their rankings, particularly when records are closely matched, increasing the incentive to cheat.
- Social dynamics within tournaments can lead to moral incentives among wrestlers to assist opponents in precarious ranking situations.
White-Collar vs. Street Crime
- White-collar crime is often distinguished by the lack of immediate victims, low detection rates, and the difficulties in quantifying its impact, setting it apart from more visible street crimes.
Thievery Contextualization
- People are more likely to steal from strangers than friends due to the perceived greater cost associated with harming someone they know, highlighting the role of personal relationships in economic behavior.
Studying That Suits You
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Description
Test your understanding of the key concepts in Chapter 1 of 'Freakonomics' with these flashcards. This chapter examines the importance of incentives in economic analysis through various scenarios and examples.
