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This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.

Short Answer Questions

1. To whom is the following quote attributed: "The agent of economic theory is rational, selfish, and his tastes do not change" (525)?

2. The author presents several examples in Chapter 26 that demonstrate that there is no loss aversion in what kinds of interactions?

3. In the author's description of the cold-pressor experiment, how long did the short episode consist of?

4. When did the CIA obtain information that al-Qaeda might be planning a major attack against the United States?

5. Who introduced the term "affective forecasting"?

Short Essay Questions

1. What is a correlations coefficient?

2. What is the expected utility hypothesis?

3. How did Nassim Taleb define the term narrative fallacy in The Black Swan?

4. What is a framing effect?

5. What are the three qualifications when deciding whether or not to accept a small risk with positive expected value?

6. What is the principle of diminishing sensitivity?

7. What is broad framing? What is narrow framing?

8. How does the author suggest a person should go about hiring a sales representative for his firm using algorhythms?

9. What is the principle of loss aversion?

10. What story from Malcolm Gladwell's book Blink does the author present?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

What is the halo effect? How does the author demonstrate the halo effect through examples in the text? How would the halo effect come into place when interviewing potential employees for a position?

Essay Topic 2

Discuss Daniel Bernoulli and his contributions to the study of decision making. What approach did Bernoulli introduce to the evaluation of gambles? Why is Bernoulli's theory flawed?

Essay Topic 3

How are normalcy and the capacity for surprise defined and analyzed in "Assessing Normalcy"? To which system of thought does each apply? What happens when several surprises happen in succession of one another?

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This section contains 678 words (approx. 3 pages at 300 words per page) View a FREE sample