2.07 Graded Assignment: Lab Questions Saving More Tomorrow

1. Shlomo Benartzi begins his talk by outlining three things that we as a people are not doing well. What are these three things? Do you agree or disagree with his evaluation of these things?

2. What is behavioral finance? What does behavioral finance have to do with personal and family finance?

3. What are some of the behavioral obstacles that influence personal finance as described by Benartzi?

4. What is Benartzi’s solution to all of these behavioral challenges that effect personal finance? How does improved personal finance benefit the economy in general?

What We Learned from Teetering on the Fiscal Cliff

1. Based on what Davidson says, how would you describe the term ’fiscal cliff’?

2. Davidson describes two fundamentally different economic philosophies that both impact the debt crisis that the US faces. What are these philosophies? Do you agree with one more than the other?

3. Davidson offers several solutions to the major issues, stating that fiscally we are actually not a nation that is divided on the major issues. What are some of the fiscal solutions that he mentions tweaking?

4. While Davidson outlines several issues that the parties are actually not terribly divided on, he also outlines two issues that are hyper-partisan. What are these fiscal issues and why do you think that the parties are so divided? Do you lean towards the Democrat or Republican view on these issues?

5. Towards the end of his talk, Davidson discusses a fear. What is this fear? How does this fear, as well as his entire discussion of the fiscal cliff, relate back to economic factors that influence our personal finances?