Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

9. Behavioral economics Indicate whether each of the following examples of behav

ID: 1204927 • Letter: 9

Question

9. Behavioral economics

Indicate whether each of the following examples of behavior is consistent with the way traditional economic framework suggests people should act, or if it is reserved for behavioral economists to examine.

Example

Consistent with the Predictions of Traditional Economic Models

Reserved for Behavioral Economics

Example

Consistent with the Predictions of Traditional Economic Models

Reserved for Behavioral Economics

Some people choose to work fewer hours after receiving a raise at work. Some people sacrifice disposable income to help their children pay for college. Some people care about how much money they make relative to other people rather than their absolute level of income. Some people treat $100 they earn differently from $100 they receive as a gift.

Explanation / Answer

Following is the complete table -

Example Consistent with the Predictions of Traditional Economic Models Reserved for Behavioral Economics Some people choose to work fewer hours after receiving a raise at work. Some people choose to work fewer hours after receiving a raise at work. Some people sacrifice disposable income to help their children pay for college. Some people sacrifice disposable income to help their children pay for college. Some people care about how much money they make relative to other people rather than their absolute level of income. Some people care about how much money they make relative to other people rather than their absolute level of income. Some people treat $100 they earn differently from $100 they receive as a gift. Some people treat $100 they earn differently from $100 they receive as a gift.