Micromotives and Macrobehavior Test | Mid-Book Test - Medium

Thomas Schelling
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This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.

Multiple Choice Questions

1. What does Schelling say about a bike owner buying a bike for $90 and selling it for $150?
(a) He says that the exchange is consistent with laws of capitalism.
(b) He says that the owner gains a profit of $60.
(c) He says that the owner still has to pay overhead, so the exchange is equal.
(d) He says that the exchange replaces a real bicycle with abstract money.

2. What does Schelling say the presence of a small group of black students in a college student body does for any economic propositions about the behavior of that student body?
(a) Introduces tension and inequality.
(b) Introduces randomness.
(c) Introduces uncertainty.
(d) Introduces non-economic competition.

3. What does Schelling say about economic systems that allow unequal distribution of wealth?
(a) That they are admirable.
(b) That, based on human nature, they are inevitable.
(c) That they compel amazement, but not admiration.
(d) That they are pernicious.

4. What does Schelling compare to the process of tracking the circulation of money in an economy?
(a) Rumors circulating.
(b) The development and use of language.
(c) Musical chairs.
(d) Water's movement from the ocean to clouds to rivers to the ocean.

5. What does Schelling say Hardin based his research on?
(a) Cows grazing.
(b) People selling cars.
(c) Pollution.
(d) Ethnic populations moving into new neighborhoods.

Short Answer Questions

1. What does Schelling say race discrimination can lead to?

2. What does Schelling use his lecture to an audience of 800 people to illustrate?

3. What do the laws visible in the human behavior Schelling describes lead you to expect in other cyclic processes?

4. What case does Schelling use to illustrate the difficulty of making an economic proposition?

5. Why can the Golden Gate Bridge charge a double toll for traffic in one direction without fear of being unfair?

Short Essay Questions

1. In what way does Schelling say that individual and aggregate behavior are different?

2. How many possible genetic variations can result when two people have a baby together?

3. What behavior does discrimination allow Schelling to model?

4. In what way does a thermostat mirror the behaviors of many systems, in Schelling's analysis?

5. What would be the consequence of parents preferring boys to girls, in Schelling's analysis?

6. What is the commons model?

7. How does Schelling describe segregation?

8. What does Schelling say segregation and separation, sharing and mixing have in common?

9. What would the demographic consequences be, if parents could select the traits of their children?

10. What issues does Schelling describe surrounding the question of raising the draft age in the U.S.?

(see the answer keys)

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