Behavioral Economics Quiz 1 Graded A+
Animus Discrimination - ANSWER-occurs when agents' personal prejudices or "tastes"
against associating with members of a particular group (in a particular way) affect their
treatment of those individuals
Anomalies - ANSWER-a deviation or departure from the normal or common order, form,
or rule; an exception
Audit Study - ANSWER-a specific type of experimental method in which a pair of
comparable people are observed in a specific situation to see if they fare differently
Between-Subject Design - ANSWER-Each subject receives only one treatment
combination
Bid-Ask Spread - ANSWER-the difference between the bid price and the asked price
Big Data - ANSWER-the exponential growth in the volume, variety, and velocity of
information and the development of complex, new tools to analyze and create meaning
from such data
Calibration - ANSWER-Any procedure used to evaluate the accuracy of a measurement
system and, when sources of error are found, to use that information to correct or
improve the measuring system
Call Market - ANSWER-When trades can only be placed during a specific time period;
Very liquid when in session because all traders are present but illiquid between
sessions; All trades, bids, ands asks are declare
Causality - ANSWER-the relationship between cause and effect
Classroom Experiment - ANSWER-activities where any number of students work in
groups on carefully designed guided inquiry questions
Collusion - ANSWER-occurs when competing firms in an industry work together to
control prices and increase profits
Control - ANSWER-In an experiment, the standard that is used for comparison
Controlled Field Experiment - ANSWER-test marketing
Correlation - ANSWER-A measure of the extent to which two factors vary together, and
thus of how well either factor predicts the other.
, Counter-Signaling - ANSWER-the behavior where agents with the highest level of a
given property invest less into proving it than individuals with a medium level of the
same property.
Demographic Effects - ANSWER-birth, education, and religion determine public opinion
i.e. People are living longer today than ever before, so they can draw post-retirement
benefits for longer
Dictator Game - ANSWER-Dictators can set whatever split they want, the people MUST
accept
Discrimination - ANSWER-Behavior targeted at individuals or groups and intended to
hold them apart and treat them differently.
Double Auction - ANSWER-A system in which buyers enter competitive bidders and
sellers enter competitive offers simultaneously, as opposed to the over-the-counter
market, where trades are negotiated. Examples are the NYSE and the AMEX
Economic Discrimination - ANSWER-paying a person a lower wage or excluding a
person from an occupation on the basis of an irrelevant characteristic such as race or
gender
Economic Incentive - ANSWER-motivation to join an interest group because the group
works for policies that will provide members with material benefits
Efficiency - ANSWER-The percentage of the input work that is converted to output work
Endowment Effect - ANSWER-the tendency for people to inflate the value of objects,
goods, or services they already own
Enriched Laboratory Experiment - ANSWER-Involves making the lab look and feel more
like the field situation
Equilibrium - ANSWER-A situation in which the market price has reached the level at
which quantity supplied equals quantity demanded
Equity - ANSWER-A condition in which people receive from a relationship in proportion
to what they give to it.
Experimenter Demand Effects - ANSWER-Situations in which behavior in the lab may
be influenced by subjects perceptions of what of what the experimenter wants or
expects.
Fairness - ANSWER-Free from bias, dishonesty, or injustice
Animus Discrimination - ANSWER-occurs when agents' personal prejudices or "tastes"
against associating with members of a particular group (in a particular way) affect their
treatment of those individuals
Anomalies - ANSWER-a deviation or departure from the normal or common order, form,
or rule; an exception
Audit Study - ANSWER-a specific type of experimental method in which a pair of
comparable people are observed in a specific situation to see if they fare differently
Between-Subject Design - ANSWER-Each subject receives only one treatment
combination
Bid-Ask Spread - ANSWER-the difference between the bid price and the asked price
Big Data - ANSWER-the exponential growth in the volume, variety, and velocity of
information and the development of complex, new tools to analyze and create meaning
from such data
Calibration - ANSWER-Any procedure used to evaluate the accuracy of a measurement
system and, when sources of error are found, to use that information to correct or
improve the measuring system
Call Market - ANSWER-When trades can only be placed during a specific time period;
Very liquid when in session because all traders are present but illiquid between
sessions; All trades, bids, ands asks are declare
Causality - ANSWER-the relationship between cause and effect
Classroom Experiment - ANSWER-activities where any number of students work in
groups on carefully designed guided inquiry questions
Collusion - ANSWER-occurs when competing firms in an industry work together to
control prices and increase profits
Control - ANSWER-In an experiment, the standard that is used for comparison
Controlled Field Experiment - ANSWER-test marketing
Correlation - ANSWER-A measure of the extent to which two factors vary together, and
thus of how well either factor predicts the other.
, Counter-Signaling - ANSWER-the behavior where agents with the highest level of a
given property invest less into proving it than individuals with a medium level of the
same property.
Demographic Effects - ANSWER-birth, education, and religion determine public opinion
i.e. People are living longer today than ever before, so they can draw post-retirement
benefits for longer
Dictator Game - ANSWER-Dictators can set whatever split they want, the people MUST
accept
Discrimination - ANSWER-Behavior targeted at individuals or groups and intended to
hold them apart and treat them differently.
Double Auction - ANSWER-A system in which buyers enter competitive bidders and
sellers enter competitive offers simultaneously, as opposed to the over-the-counter
market, where trades are negotiated. Examples are the NYSE and the AMEX
Economic Discrimination - ANSWER-paying a person a lower wage or excluding a
person from an occupation on the basis of an irrelevant characteristic such as race or
gender
Economic Incentive - ANSWER-motivation to join an interest group because the group
works for policies that will provide members with material benefits
Efficiency - ANSWER-The percentage of the input work that is converted to output work
Endowment Effect - ANSWER-the tendency for people to inflate the value of objects,
goods, or services they already own
Enriched Laboratory Experiment - ANSWER-Involves making the lab look and feel more
like the field situation
Equilibrium - ANSWER-A situation in which the market price has reached the level at
which quantity supplied equals quantity demanded
Equity - ANSWER-A condition in which people receive from a relationship in proportion
to what they give to it.
Experimenter Demand Effects - ANSWER-Situations in which behavior in the lab may
be influenced by subjects perceptions of what of what the experimenter wants or
expects.
Fairness - ANSWER-Free from bias, dishonesty, or injustice
