Which of the following statements is correct?   a. Contingent commodities are goods delivered only if a particular state of the world occurs.   b. The key insight offered by state-preference models is to reframe the study of behavior under uncertainty back into a problem of utility maximization subject to a budget constraint (standard choice-theoretic framework).     c. Insurance markets are an example of markets for contingent claims.

A personal economic decision that was driven by a behavioral bias rather than by pure rational behavior.

Which of the following does not correctly explain about the purposeful behavior that reflects "rational self-interest? 1) Sellers try to make the most profits possible from the sales of their products as many as possible. 2) Consumers spend their incomes to get the maximum benefit or satisfaction from the goods and services they purchase. Producers allocate their limited resources to minimize their costs to achieve a 3) certain level of production. 4) People care for nothing but his or her own goal since there is a tradeoff problem caused by limited resources. Ouestion 14 (4 points)

social preferences are not really preferences, and unselfish behavior is really motivated by the desire to follow rules and conventions with respect to what is fair. Is this interpretation correct?

Identify each statement as being associated with neoclassical economics or behavioral economics                                                                                           a. People are eager and accurate calculators.                                                        b. People are often selfless and generous.                                                           c. People have no trouble resisting temptation.                                                 d. People place insufficient weight on future events and outcomes.                 e. People treat others well only if doing so will get them something they want.

31) People respond to incentives A) by ignoring negative incentives and responding to positive incentives only. B) only when they are irrational. C) by calculating their individual costs and benefits and determining which is greater. D) when they have low incomes. 32) The threat of a large fine for failure to pay income taxes is an example of A) the excessive power of the Internal Revenue Service. B) the ineffectiveness of incentives to get people to pay their taxes. C) a negative incentive to get all people to pay taxes. D) people failing to consider all the benefits the government provides them. 33) A politician says that the government should tax behavior they want less of and subsidize behavior they want more of. This is an example of A) cynical behavior in modern democracies. B) failing to consider the alternatives available to the government. C) a concern that people are not rational when they make decisions. D) using incentives to alter…

Rational Behavior imples that a) a person recognizes the real cost of acquiring or doing something. b) a person will choose among preferences so as to maximize his or her satisfaction c) a person has prefernces and can identify them d) all of the above