EBK PRINCIPLES OF MICROECONOMICS (SECON
2nd Edition
ISBN: 9780393616149
Author: Mateer
Publisher: W.W.NORTON+CO. (CC)
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Question
Chapter 17, Problem 3QR
To determine
Status quo bias and potential utility.
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Does a nudge force people to make a better choice?
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Chapter 17 Solutions
EBK PRINCIPLES OF MICROECONOMICS (SECON
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- What is the foot-in-the-door technique? How does selfperception theory relate to this effect?arrow_forwardTrue or false According to the Marginal Utility Model, the body politic is healthy when it is active.arrow_forwardWe learned that we can use choice between a gamble over someone's best and worst outcomes and getting an outcome of interest (like getting pizza) for certain as a way to assign numeric values to utility (on a scale of 0 to 1). Using this method, if you are indifferent between the following: A gamble that has a 0.3 chance of your best possible outcome (and no lower chance), and a 0.7 chance of your worst possible outcome. Getting pizza for certain. it means that your utility for getting pizza is:arrow_forward
- When consumers were given the opportunity to select a package of ground beef labeled “75% lean” or a package of ground beef labeled “25% fat,” most consumers chose “75% lean.” Why? What concept from the chapter does this illustrate? The reason is that consumers are swayed by cheap talk. Cheap talk is the concept. The reason is that consumers are much more likely to choose the alternative framed as the positive option. This is called a framing effect. The reason is that consumers infer the value of a product from positive advertising. This is called inference induction. The reason is that consumers respond better to higher numbers. They feel they are getting more because 75 is greater than 25. The concept is the endowment effect.arrow_forwardNeed the right answer among choices and also an explanation of the answer.arrow_forwardWhat do you think of the ethics of using unconscious nudges to alter people’s behavior? Before you answer, consider the following argument made by economists Richard Thaler and Cass Sunstein, who favor the use of nudges. They argue that in most situations, we couldn’t avoid nudging even if we wanted to because whatever policy we choose will contain some set of unconscious nudges and incentives that will influence people. Thus, they say, we might as well choose the wisest set of nudges.arrow_forward
- What is Reasonable Doubt?arrow_forwardCan Granger causality produce false positive or false negative results?arrow_forwardJohn has got a Billie Eilish concert ticket for $600. However, when he arrived at the concert venue, he realized that he had lost the ticket on the way there. John is a big fan of Billie and he had waited for this concert for a very long time. A person approached him and offered his ticket for $700. If the value this concert brings to John is worth $1,000, shall he buy the ticket (assuming the ticket is authentic)? Explain your answer with reference to the most relevant principle of economics you learnt in class.arrow_forward
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