FinalExam_2017(1).docx - Ec323 Final Exam 2017 Professor Fisman Page 1 of 6 Instructions This test consists of 10 multiple choice questions followed by

# FinalExam_2017(1).docx - Ec323 Final Exam 2017 Professor...

• Test Prep
• 6

This preview shows page 1 - 3 out of 6 pages.

Ec323 Final Exam 2017 Professor Fisman Page 1 of 6 Instructions This test consists of 10 multiple choice questions followed by 5 short answer questions, with a total of 86 points available. You have 120 minutes (12:30 – 2:30pm) to complete the test. Make sure to put your name and BU ID This is a closed book test. You may not use your computer, phone, notes, calculator…anything other than a pen (and a rule if you like) during the test. Please enter your multiple choice answers on the first page of your blue book. Reminder that for short answer questions you should, as a rough guide, think about having about two paragraphs’ worth for each of the four questions. Don’t write random stuff: You’ll be rewarded for correct answers and penalized for irrelevant/incorrect content. Good luck!

Subscribe to view the full document.

Ec323 Final Exam 2017 Professor Fisman Page 2 of 6 Multiple Choice (2 points each) 1.You’re bidding on an oil field off the coast of Brazil. It is a first price sealed bid auction with a dozen bidders, a good strategy is: a.Bid whatever you think the oil field is worth, so as to maximize your chances of winningb.Definitely don’t bid at all, because of the risk of bidding too highc.Bid a little lower than you think the oil field is worth, so you have a high chance of winning and will earn positive profits if you dod.None of the above 2.Under prospect theory, individuals will tend to: 3.In a 1983 article, Kahneman and Tversky gave subjects the following task: “Consider a regular six-sided die with four green faces and two red faces. The die will be rolled 20 times and the sequence of greens (G) and reds (R) will be recorded. Pick one of the sequences below. If your sequence comes up you will be paid \$25: 1. RGRRR 2. GRGRRR 3. GRRRRR They found that option 2 was chosen by 65 percent of subjects. This can most easily be associated with which bias:
• Fall '09
• NOORBUTT
• Utility, Professor Fisman

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes