Exam 1: Reasoning With Economics: Models and Information

Why are math and graphics used in economic models?

Which of the following abilities should an economic model possess?

Which of the following is NOT an underlying characteristic of a smart group?

When multiple facts about a sample set are known, a(n) _____ heuristic makes the choice on the basis of the first category of facts in which the samples differ.

Which of the following exempliflies altruism?

Which of the following financial market developments has helped to remove financial constraints faced by people?

A highly technical product is more likely to be sold by mass advertising as it signals to the consumers that the product is of dependable quality.

Which of the following statements about advertising is true?

Heuristics economize on the mental capabilities of people.

Which of the following is a positive statement?

Publicly available data on production costs and box office revenues reflect that:

Which of the following is considered to be a cost of information?

The ____ heuristic observes that when facts are at issue the correct answer is often the one people recognize, and the incorrect answer is the one they do not.

A simple model of information acquisition for shopping predicts that, the larger the percentage of dealers in an area seen by the typical shopper, the _____ will be the dispersion of the prices _____ relative to their average.

Suppose a social activist collecting information on the level of air pollutants in sparsely populated regions concludes that pollution levels are positively related to population.Since her sample set is restricted only to sparsely populated regions her outcome would be erroneous due to:

When the method used to collect a sample biases any conclusions that might be drawn from it, the sample is said to have a selection bias.

Why do economists sometimes treat decision makers as boundedly rational?

The math and graphics used in economics help us better understand the logic of:

Which of the following products can be sold through mass advertising?

When people use a recognition heuristic, they often get answers right because the correct answer is usually the one they are familiar with while the incorrect answer is the one which is unfamiliar to them.