EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
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Chapter 17, Problem 10RQ
To determine
Pros and cons of intervention pf government in the market. Other market failures where intervention was required.
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Do you believe in the principles of behavioral economics as the new way to guide economic thought and theory or are the fundamentals of traditional economics(eg. Efficient Markets Hypothesis) a necessary baseline which enables us to then understand deviations from rationality? Why?
Give two examples of both real-life irrationality (behavioral economics) and rationality (traditional economics).
Indicate whether each of the following examples of behavior is consistent with the way the traditional economic framework suggests people should
act, or whether it is reserved for behavioral economists to examine.
Consistent with the Predictions of Traditional
Reserved for Behavioral
Economics
Example
Economic Models
Some people treat $80 they earn differently from $80
they receive as a gift.
Some people would be willing to pay money to lower the
incomes of others.
Some people sacrifice disposable income to help their
children pay for college.
Some people choose to work fewer hours after receiving a
raise at work.
Behavioral economics
Indicate whether each of the following examples of behavior is consistent with the way the traditional economic framework suggests people should
act, or whether it is reserved for behavioral economists to examine.
Reserved for
Consistent with the Predictions of
Behavioral
Example
Traditional Economic Models
Economics
Some people care about how much money they make relative to other
people rather than their absolute level of income.
Some people would be willing to make a large sacrifice in order to help a
loved one.
Some people treat $55 they earn differently from $55 they win in a
random drawing.
Some people choose to work fewer hours after receiving a raise at work.
Chapter 17 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 17.3 - Prob. 1MQCh. 17.3 - Prob. 2MQCh. 17.3 - Prob. 1.1MQCh. 17.3 - Prob. 1.2MQCh. 17.3 - Prob. 2.2MQCh. 17.3 - Prob. 1.3MQCh. 17.3 - Prob. 1TTACh. 17.3 - Prob. 2TTACh. 17.4 - Prob. 1TTACh. 17.4 - Prob. 2TTA
Ch. 17.4 - Prob. 1.1TTACh. 17.4 - Prob. 2.1TTACh. 17.4 - Prob. 1MQCh. 17.4 - Prob. 1.2TTACh. 17.4 - Prob. 2.2TTACh. 17.5 - Prob. 1MQCh. 17.5 - Prob. 2MQCh. 17.6 - Prob. 1TTACh. 17.6 - Prob. 2TTACh. 17 - Prob. 1RQCh. 17 - Prob. 2RQCh. 17 - Prob. 3RQCh. 17 - Prob. 4RQCh. 17 - Prob. 5RQCh. 17 - Prob. 6RQCh. 17 - Prob. 7RQCh. 17 - Prob. 8RQCh. 17 - Prob. 9RQCh. 17 - Prob. 10RQCh. 17 - Prob. 17.1PCh. 17 - Prob. 17.2PCh. 17 - Prob. 17.3PCh. 17 - Prob. 17.4PCh. 17 - Prob. 17.5PCh. 17 - Prob. 17.6PCh. 17 - Prob. 17.7PCh. 17 - Prob. 17.8PCh. 17 - Prob. 17.9PCh. 17 - Prob. 17.10P
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