1. When the author demonstrates enlisting cognitive ease when writing, he gives two statements about Adolf Hitler. Which of these statements APPEARED to be the most legitimate?
(a) The statement in wide-set print.
(b) The statement in bold print.
(c) The statement in italics.
(d) The statement in small print.

2. The author offers a scenario in which a subject purchases a $200 concert ticket to see their favorite band. They find that others are offering $3,000 for the ticket, but they do not sell it. What is this an example of?
(a) Narrative fallacy.
(b) The availability cascade.
(c) Theory-induced blindness.
(d) Endowment effect.

3. In discussing the stock market, the author states that if all the assets in a market are correctly priced, it leaves no scope for cleverness but it also does what?
(a) Creates definitive axioms.
(b) Protects fools from their own folly.
(c) Enacts executive control.
(d) Creates an availability cascade.

4. To whom is the following quote attributed: "The agent of economic theory is rational, selfish, and his tastes do not change" (525)?
(a) Gary Klein.
(b) Richard Thaler.
(c) John Gottman.
(d) Bruno Frey.

5. Who was Richard Nisbett's student who assisted in conducting an experiment at the University of Michigan that the author cites in Chapter 15?
(a) John List.
(b) Christopher Hsee.
(c) Gary Klein.
(d) Eugene Borgida.

Short Answer Questions

1. In the following example from Chapter 30, the author posits the following in regards to a person choosing a marble from an urn. The red marbles win a prize. "Urn A contains 10 marbles, of which 1 is red. Urn B contains 100 marbles, of which 8 are red" (631). What are the chances of winning in Urn B?

2. Who was the director of the CIA when intelligence learned that al-Qaeda may be planning a major attack on the U.S.?

3. What is the title of the first joint article written by Daniel Kahneman and Amos Tversky?

4. Who wrote the book Sources of Power?

5. The author asserts that errors of prediction are inevitable for what reason?

(see the answer key)

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