Seven Mind-Blowing Reasons Why Economists Is Using This Technique For Exposure

Some economists at the University of Alberta, Edmonton, Canada have been testing exposure theory on their own students, who are now entering a clinical trial. This technique uses randomized assignments to gauge how people react to new and different tasks. In this way the participants are given the chance to get used to something before they’re asked to do it in full. What business practice contributed most to Andrew Carnegie’s ability to form a monopoly? What is the name of the stock market index that measures the rate of change in prices for a sample of stocks? What is the name of the economic system developed during the Chinese dynasty? The right answer will vary greatly and depend on who you ask. Economists use these types of questions to see how students respond to unexpected or unusual situations in order to test their exposure theory.

Seven Mind-Blowing Reasons Why Economists Is Using This Technique For Exposure :

1. Economists Are Really Mad

Economists are quite competitive and they get very frustrated when they don’t do well on tests, according to the BBC. They are willing to go to great lengths in order to prove who is the best. According to some people, this kind of competition is good for the economy because it makes for better trained economists who have a lot of different experiences under their belt.

2. Exposure Tests Can Help With The Economic System

Economists have used exposure tests for a relatively long time now in order to test the effects of different economic systems or different financial innovations. For example, economists paid less attention to the stock market than they should have because they didn’t realize just how important the Dow Jones Industrial Average was until they did the exposure test. They found that their students generally wouldn’t invest in stocks and that is why the stock market had just a few companies and traded at a relatively low price compared to how it is today.

3. Economists Feel Bad When They Don’t Do Well On Test

One of the researchers who conducted this study admits to being a little bit competitive as well. He recognizes that the competition can be a bit intense, so he doesn’t always understand why people are upset. The idea is that if people have done the exposure test before, they are more likely to prepare in order to do well. He thinks this makes sense because it is similar to how students prepare for tests at school.

4. It Is Self-Awareness Testing

Economists don’t want their students to just blindly follow their rules and regulations, so they do a type of self awareness testing to see what their students are thinking about or how they might react. This is good for the economy because economists are able to see what their students are thinking before they make certain changes. For example, when they did the exposure test before bringing in the European Union, they found that most of the people in their sample weren’t happy about it.

5. Economists Want To Alter Their Prior Views

Economists also want to find out what they missed before and this is why they have been doing tests like these as well as memory tests on themselves as well. They want to see if exposing themselves to something will help them remember it better or alter how they think about a situation. They can use this information in order to change things if necessary and make them more beneficial for the economy overall.

6. Economists Are Tired Of Being Misunderstood

In an article by Leigh Buchanan, she also mentions that some of the researchers conducting these tests are tired of being misunderstood by their colleagues as well. They are tired of taking heat for things that they might not have even done at all or done poorly. They want to be able to show people that their experiments may be helpful and beneficial. So they conduct these tests because it will help them show the benefits of exposure before the effects are too far in the future to see without doing one.

7. Economists Want To See The Future

It is also important for economists to occasionally test the waters, so to speak in order to see just how things will react and what will happen. They are experiencing an economic bubble right now and this is a good time for them to conduct some exposure tests on the future of their economy as well as the things that people will be looking at in the future. It is better for them to experiment now than it is to wait until it happens in real life and then find out that everything could have been done differently.