Chapter 21, Thinking Like a Modern Economist Video Solutions, Microeconomics

01:31

Problem 1

How is a model different from the reality that it represents? Give an example. $\quad(L O 21-1)$

Bobby Barnes

University of North Texas

00:59

Problem 2

How does an inductive approach to economics differ from a deductive approach? $(L O 21-I)$

Charles Carter

Numerade Educator

01:29

Problem 3

What are the two main building blocks for traditional economists? How do they differ from the building blocks of behavioral economists? $(L O 21-1)$

Oluwadamilola Ameobi

Numerade Educator

02:49

Problem 4

How does enlightened self-interest differ from selfinterest? $(L O 21-1)$

Noor Almesad

Numerade Educator

02:01

Problem 5

One rule of thumb many people follow is "Eat until your plate is clean." How does this rule of thumb violate the rationality assumption? $(L O 21-1)$

Jonathan Turovsky

Numerade Educator

01:53

Problem 6

Name two advantages and two disadvantages of the traditional model. $\quad$ (LO21-1)

Theodore Donnell

Numerade Educator

00:58

Problem 7

Name two advantages and two disadvantages of the behavioral model. $\quad$ (LO21-1)

Becky Rahm

Numerade Educator

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In a study, when asked to choose between an iPod retailing for $\$ 100$ and $\$ 100$ cash, people were more likely to choose the money. But when they were given an iPod and then asked if they would trade it for $\$ 100,$ they were more likely to choose the iPod. $(L O 2 I-2)$
a. What effect does this reflect?
b. Is this behavior rational?

Rashmi Sinha

Numerade Educator

03:09

Problem 9

What is a heuristic model? Can a heuristic model be traditional? Why or why not? (LO21-2)

Prashant Bana

Numerade Educator

02:51

Problem 10

Why might government intervention make sense in a model of path dependency but not a supply/demand model? $(L O 21-2)$

David Gagnon

Numerade Educator

01:27

Problem 11

According to economist Robert Frank, why are people more likely to return $\$ 20$ they'd been given in error in change than a lampshade that had not been scanned at checkout? What does this say about traditional building blocks? $(L O 21-2)$

Erwin Antoni

Numerade Educator

01:27

Problem 12

Why do economists rely more on empirical evidence today than they did 100 years ago? $(L O 21-3)$

Yang Su

Numerade Educator

01:14

Problem 13

What does it mean to "let the data speak"? ( $L O 21-3)$

Harsh Gadhiya

Numerade Educator

01:59

Problem 14

What is a regression? (LO21-3)

Shiksha Dutta

Numerade Educator

00:33

Problem 15

What characteristics would you look for in data to use as a natural experiment? $(L O 2 I-3)$

David Collins

Numerade Educator

01:36

Problem 16

What is an agent-based computational economic model? $(L O 21-3)$

Mihir Nayar

Numerade Educator

01:20

Problem 17

Why are "out-of-sample" data important for testing inductive models? $(L O 21-3)$

Andrew Schumer

Numerade Educator

01:25

Problem 18

True or false? Models provide both theorems and precepts. Explain your answer. $(L O 21-4)$

Noah Musser

Numerade Educator

03:42

Problem 19

State whether each of the policy recommendations is an example of a modern economist's precepts or a traditional economist's precepts. $\quad(L O 21-4)$
a. More goods are preferred to fewer goods.
b. Banks ought to be required to get approval for new financial instruments.
c. Firms can decide what information to put on food labels because consumers will demand that relevant information be listed.
d. Utility companies ought to provide consumers a chart comparing their electricity usage with the average in their neighborhood.

Jennifer Stoner

Numerade Educator

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