1. Which of the following is not correct?
a.
Economics is a study of the choices that people make and the resulting interactions they have with one
another.
b.
In areas it has already studied, economists have found perfect and unchanging answers.
c.
Economists are trying to expand their understanding of human behavior and society.
d.
The economics of asymmetric information, political economy, and behavioral economics are all topics at the
frontier of microeconomics.
2. Asymmetric information, political economy, and behavioral economics
a.
are topics at the frontier of microeconomics.
b.
are topics that economists no longer research.
c.
are attempts by economists to expand their understanding of human behavior and society.
d.
both a and c are correct.
3. When one party is better informed about an economic situation than another party, economists describe the problem as
one of
a.
asymmetric information.
b.
confirmation bias.
c.
political economy.
d.
behavioral economics
4. When markets fail, which of the following is true?
a.
Government intervention can always improve outcomes.
b.
Government intervention can potentially improve outcomes.
c.
Government intervention can never improve outcomes.
d.
Markets do not fail.
5. The field of behavioral economics builds a more subtle and complex model of economic behavior using insights from
a.
physics.
b.
biology.
c.
psychology.
d.
anthropology.
6. Which of the following frontier areas of economics incorporates some findings from psychology into the study of
economic issues?
a.
asymmetric information
b.
political economy
c.
behavioral economics
d.
public economics
7. Which of the following frontier fields of economics identifies that people do not always act rationally?
a.
asymmetric information
b.
political economy
c.
behavioral economics
d.
existential economics
8. Bill would like to buy a gift for Ann to convey his love for her. Which of the following areas of economics would most
likely study this type of decision?
a.
asymmetric information
b.
political economy
c.
behavioral economics
d.
industrial organization
9. Which of the following frontier areas of microeconomics applies economic tools to the study of government (or public)
choice?
a.
Political economy
b.
Behavioral economics
c.
Game theory
d.
Industrial organization