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This quiz consists of 5 multiple choice and 5 short answer questions through Chapter 3: Thermostats, Lemons, and Other Families of Models.

Multiple Choice Questions

1. What example from human psychology does Schelling contrapose to conscious choice?
(a) Parasympathetic behavior.
(b) Dread and awe.
(c) Instinct.
(d) Hunger.

2. What does Schelling say is important in economics?
(a) Generalizations.
(b) Individual behavior.
(c) Randomness.
(d) Natural laws.

3. What does Schelling say about human desire?
(a) It changes from childhood to teen years to adulthood.
(b) It seeks mathematically-predictable levels of stability.
(c) It is torn between irreconcilable desires for different states.
(d) It is torn within itself and it is split from its own language.

4. What does Schelling say has to be closely attended to, in economic analysis?
(a) Rhetoric of equality.
(b) Economists' desire for certain outcomes.
(c) Definition of terms.
(d) The invisible hand of the market.

5. What does Schelling call the phenomenon when two independent activities are dependent upon each other in that one is looked to as the other's source of growth?
(a) A direct proportion.
(b) The acceleration principle.
(c) An economic proposition.
(d) The transcendental relationship.

Short Answer Questions

1. How does Schelling describe the system of skiers going up a lift and coming down the trails?

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

3. What does Schelling say people have a tendency to do?

4. What does Schelling say the measles story is an example of?

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

(see the answer key)

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