As a Result of the Great Recession

question 33

Multiple Choice

As a result of the Great Recession,

• A)home equity values and retirement assets plummeted.
• B)unemployment rose.
• C)Americans were bitter as they lost homes and jobs and banks and businesses received government bailouts.
• D)Americans lost more than $6 trillion of their net worth.
• E)All of these are correct.​

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Definitions:

Behavioral Economics

A field of economics that examines the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Economic Behavior

The study of how individuals, households, and organizations make choices to allocate resources in the midst of scarcity and the effects of these decisions on markets and the economy.

Dictator Game

An experimental economics scenario where one player, the "dictator," determines how to split an endowment between themselves and another player.

Ultimatum Game

A game in economic experiments where two players decide how to divide a sum of money; one proposes the split, and the other can accept or reject it.