|Name: _________________________||Period: ___________________|
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 is the term for a situation where two people hurt themselves and each other by making self-interested decisions?
(a) The Spanish prisoner.
(b) The lemon model.
(c) The tipping-point/critical-mass model.
(d) Prisoner's dilemma.
2. What does Schelling say about segregation?
(a) It is always at least unconsciously deliberate.
(b) It is usually harmless.
(c) It is generally an emotional expression of the collective unconscious.
(d) Sometimes it is deliberate, but not always.
3. What does Schelling say has to be closely attended to, in economic analysis?
(a) Economists' desire for certain outcomes.
(b) Rhetoric of equality.
(c) The invisible hand of the market.
(d) Definition of terms.
4. What does Schelling say the number of bikes stolen is almost identical to?
(a) One third of the number of bikes bought new.
(b) The number of bikes reported stolen.
(c) The number of bikes that cannot be fixed each year.
(d) The number of bikes not reported stolen.
5. What term does Garrett Hardin use to describe people who infringe on others by following their own desires intently?
(a) Critical mass.
(d) Self-fulfilling prophecy.
Short Answer Questions
1. What does Schelling say a proposition has to have in order to be true?
2. What does Schelling say about a bike owner buying a bike for $90 and selling it for $150?
3. Schelling says that it is hard to draw the line between "individually motivated" segregation and what?
4. What does Schelling say Hardin based his research on?
5. What does Schelling say discrimination is?
Short Essay Questions
1. In what way does Schelling say that individual and aggregate behavior are different?
2. What behavior does discrimination allow Schelling to model?
3. Where does the equivalence of terms in an economic break down, in Schelling's analysis?
4. What experience got Schelling thinking about distribution?
5. According to Schelling, what is not included in his model of integration and segregation?
6. What is a semi-closed system?
7. How many possible genetic variations can result when two people have a baby together?
8. What does Schelling say the thermostat model seeks?
9. What does Schelling say a closed model can be used for with regard to prospective college students?
10. What is an externality?
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