Question 5 [1 point) If people make predictable errors in decision-making a) Behavioural science has a role to play in developing models which predict a departure from rational choice Obj Traditional economic models become completely obsolete Traditional economic models remain intact due to random errors cancelling out O d) Behavioural science has no role to play in developing models which predict a departure from rational choice Question & [1 paint) A dass of 20 students are allowed to examine a metal water bottle with the Golden Hawk logo on the side, and an attractive fountain pen with the same logo. Both items sell in the Laurier bookstore at the same price of $15. Each student is then randomly assigned to receive either a bottle or a pen. Students are then asked if they wish to trade their item for the other item with any other student willing to trade. Given the above information, traditional economic theory would predict that on average, we should observe 5 trades. True False Question 7 [1 point) Ultimatum game experiments have provided evidence that individuals display preferences O al that indicate they are motivated by fairness Obj that indicate they discount the future too heavily O ch that indicate they are motivated by default bias O d) that match the predictions of rational self-interest Question & [1 paint) In behavioural science, framing effects are said to occur when O al decisions are biased by losses and gains Obi decisions are biased by the existence or absence of mental accounts O d decisions are biased by the way that choices are presented O d) decisions are unaffected by the way that choices are presented Question 9 [1 paint) The difference between exponential discounting and hyperbolic discounting is O a) Individuals will discount exponentially in the short term but hyperbolically in the long term Obj Individuals who discount exponentially will make different decisions when the results are immediate compared to when the results are in the future. O d Individuals who discount hyperbolically will make consistent decisions regardless of whether the results are immediate compared to when the results are in the future O d) Individuals who discount hyperbolically will make different decisions when the results are immediate compared to when the results are in the future