In the question about dreary tasks on page 484, why is it considered puzzling from a rational perspective that a person would choose to do a task in 50 minutes in 90 days, but then postpone it when the 90th day arrives?
Explanation
This question probes the student's understanding of the concept of time inconsistency as explained through the procrastination example in Chapter 22.
Other questions
According to Chapter 22, what is the term for a situation where one person in an interaction has more or better information than the other?
In the context of the principal-agent problem, what is moral hazard?
Chapter 22 gives the market for used cars as a classic example of which problem?
What is the term for an action taken by an informed party for the sole purpose of credibly revealing their private information?
According to the case study 'Gifts as Signals' in Chapter 22, why can giving a cash gift be interpreted as a negative signal in a romantic relationship?
The field of study that applies the methods of economics to understand the functioning of government is known as:
What does the Condorcet paradox illustrate?
Which of the following is NOT one of the desirable properties of a voting system as defined by Kenneth Arrow?
According to the median voter theorem, if two political parties are trying to maximize their votes, where will they position their platforms?
The subfield of economics that integrates the insights of psychology is called:
Which of the following is NOT listed in Chapter 22 as a systematic mistake people make, deviating from the 'Homo economicus' model?
In the ultimatum game described in Chapter 22, two volunteers are to split a prize of 100 dollars. What does conventional economic theory predict Player A will propose?
What phenomenon does the ultimatum game demonstrate when played by real people?
According to the section 'People Are Inconsistent over Time', what is a reason that 401(k) retirement plans are so popular?
An insurance company offering two policies—one with a high premium and full coverage, and another with a low premium and a high deductible—is an example of what?
In the Condorcet paradox example in Table 1 on page 474, if the mayor first holds a vote between outcomes A and C, and then the winner faces B, what is the final outcome?
In the Median Voter Theorem example on page 478, what is the average preferred budget size among the 100 voters?
According to Herbert Simon, as mentioned in Chapter 22, humans should be viewed not as rational maximizers but as what?
The classic 'lemons problem' in the used car market is caused by which form of asymmetric information?
What is the primary conclusion of Arrow's impossibility theorem?
When an insurance company requires a homeowner with fire insurance to also own a fire extinguisher, it is trying to mitigate which problem?
In the public school district voting example on page 479, a poll finds voter preferences for student-teacher ratios are: 20 percent want 9:1, 25 percent want 10:1, 15 percent want 11:1, and 40 percent want 12:1. What outcome is predicted by the median voter theorem?
The separation of ownership and control in large corporations creates what specific problem discussed in Chapter 22?
Why do economists, as discussed in the section on behavioral economics, believe people might overvalue a friend's vivid story about a 'lemon' car compared to a survey of 1,000 car owners?
In the ultimatum game, if Player A proposes a 70-30 split of 100 dollars and Player B accepts, what is the outcome?
Which of the following is an example of screening?
The Condorcet Paradox is a problem for which type of voting system?
What is the unifying theme of the topics discussed in Chapter 22, as summarized in the conclusion?
When an employer pays an above-equilibrium wage to attract a better pool of applicants, which problem is the employer trying to solve?
What is the key insight from the ultimatum game regarding human behavior?
In the Condorcet paradox example from Table 1, page 474, what percentage of the electorate has Outcome C as their first choice?
The Borda count voting method, as described in Chapter 22, violates which of Arrow's conditions for a perfect voting system?
Which of these is NOT a method mentioned in Chapter 22 for a principal to respond to the moral-hazard problem in an employment relationship?
In the ultimatum game, a player who rejects a proposal of a 90-10 split (where they would receive 10 dollars) is demonstrating behavior that:
A key difference between moral hazard and adverse selection is that:
Why must an effective signal be costly, according to Chapter 22?
In the ultimatum game with a 100 dollar prize, Player B rejects Player A's offer of a 99-1 split. What is Player B's final monetary payoff?
What does the study of 401(k) plan participation, where workers are more likely to enroll if it's the default option, suggest about human behavior?
What is the primary critique of applying the median voter theorem to real-world politics?
Why might a firm facing a moral hazard problem with its employees choose to pay a year-end bonus instead of a higher weekly salary?
The failure of private markets to provide low-cost health insurance to people with few health problems can be attributed to:
In the question about the dreary task, a person choosing to spend 50 minutes in 90 days rather than 60 minutes in 91 days is demonstrating what kind of preference?
According to the 'In the News' box 'Arrow's Problem in Practice,' what voting system is used to select Oscar nominees for Best Picture?
What does the 2001 Nobel Prize awarded to Akerlof, Spence, and Stiglitz recognize, according to Chapter 22?
In the Condorcet Paradox example from Table 1, a Borda count is used where 1st choice gets 3 points, 2nd gets 2, and 3rd gets 1. What is the total score for Outcome A?
The idea that politicians may be motivated by self-interest, such as greed or a desire for reelection, rather than solely the national interest is a key insight of which field?
When a person says 'I'll start my diet tomorrow' but fails to do so when tomorrow arrives, they are exhibiting a behavior pattern known as:
Why is the study of government policy from an economic perspective, or political economy, considered a 'frontier' of microeconomics?
A student who earns a college degree to show employers they are a high-ability individual, rather than to gain productive skills, is an example of education as: