Question 1

A default rule:

Accepted Answer

A) defines what will automatically occur if someone fails to make an active decision otherwise. 
B) is a consequence that users of commitment devices agree to if they fail to follow through with their commitment. 
C) is a defined limit used to mark when someone is decidedly not making a good decision. 
D) is the defined strength of a given commitment needed to get an individual to follow through with the commitment. 
A) defines what will automatically occur if someone fails to make an active decision otherwise. 
B) is a consequence that users of commitment devices agree to if they fail to follow through with their commitment. 
C) is a defined limit used to mark when someone is decidedly not making a good decision. 
D) is the defined strength of a given commitment needed to get an individual to follow through with the commitment.

Question 2

An important category of bias in human decision making is:

Accepted Answer

A) temptation. 
B) limiting processing power. 
C) reluctance to change. 
D) All of these are important sources of bias in decision making. 
A) temptation. 
B) limiting processing power. 
C) reluctance to change. 
D) All of these are important sources of bias in decision making.

Question 3

Commitment devices are:

Accepted Answer

A) mechanisms that allow people to voluntarily restrict their choices in order to make it easier to stick to plans. 
B) socially institutionalized practices that signal a particular commitment has been made by a person. 
C) policies that force participants to choose their future commitments. 
D) None of these statements is true. 
A) mechanisms that allow people to voluntarily restrict their choices in order to make it easier to stick to plans. 
B) socially institutionalized practices that signal a particular commitment has been made by a person. 
C) policies that force participants to choose their future commitments. 
D) None of these statements is true.

Question 4

A heuristic is:

Accepted Answer

A) a mental shortcut that helps us make decisions. 
B) a positive-framing method. 
C) a method to increase the price of your vices. 
D) None of these statements is true. 
A) a mental shortcut that helps us make decisions. 
B) a positive-framing method. 
C) a method to increase the price of your vices. 
D) None of these statements is true.

Question 5

If choice architects frame choices in terms of social norms:

Accepted Answer

A) people will behave with the majority. 
B) people will be unaffected by what the majority is doing. 
C) people will behave in the opposite way,because "going rogue" is celebrated in our culture. 
D) None of these statements is true. 
A) people will behave with the majority. 
B) people will be unaffected by what the majority is doing. 
C) people will behave in the opposite way,because "going rogue" is celebrated in our culture. 
D) None of these statements is true.

Question 6

A store is choosing between advertising a credit card fee or a discount for paying cash to its customers.People will care more about:

Accepted Answer

A) avoiding the fee rather than getting the discount. 
B) getting the discount rather than avoiding the fee. 
C) neither;since it's the same outcome,people won't care one way or another. 
D) It is impossible to say without more information. 
A) avoiding the fee rather than getting the discount. 
B) getting the discount rather than avoiding the fee. 
C) neither;since it's the same outcome,people won't care one way or another. 
D) It is impossible to say without more information.

Question 7

Choice architecture can:

Accepted Answer

A) alter actual decisions and thus the ultimate outcomes. 
B) make it easier for people to make choices that will make them happier in the long run. 
C) help people make better choices without eliminating free choice. 
D) All of these statements are true. 
A) alter actual decisions and thus the ultimate outcomes. 
B) make it easier for people to make choices that will make them happier in the long run. 
C) help people make better choices without eliminating free choice. 
D) All of these statements are true.

Question 8

The most common form of "forced savings" in the U.S.is:

Accepted Answer

A) Social Security. 
B) FICA. 
C) unemployment Insurance. 
D) Medicare. 
A) Social Security. 
B) FICA. 
C) unemployment Insurance. 
D) Medicare.

Question 9

When it's not clear how to translate available information into something personally meaningful,it's:

Accepted Answer

A) more likely you'll make a mistake in your choice. 
B) less likely you'll make a mistake,given the amount of information. 
C) more likely you'll invest more time in making your choice. 
D) less likely the choice will have a big impact on you. 
A) more likely you'll make a mistake in your choice. 
B) less likely you'll make a mistake,given the amount of information. 
C) more likely you'll invest more time in making your choice. 
D) less likely the choice will have a big impact on you.

Question 10

The organization of the context and process in which people make decisions is called:

Accepted Answer

A) choice architecture. 
B) political structure. 
C) ways and means theory. 
D) choice structure. 
A) choice architecture. 
B) political structure. 
C) ways and means theory. 
D) choice structure.

Question 11

Choice architects are likely to make program participation:

Accepted Answer

A) lower,even if they frame it positively. 
B) the default rule if they want low enrollment. 
C) the default rule if they want high enrollment. 
D) None of these statements is true. 
A) lower,even if they frame it positively. 
B) the default rule if they want low enrollment. 
C) the default rule if they want high enrollment. 
D) None of these statements is true.

Question 12

When people make a decision to not participate in a program unless they actively enroll for it,program participation:

Accepted Answer

A) is likely to be lower than if people were automatically enrolled and had to actively opt-out of participating. 
B) is likely to be higher than if people were automatically enrolled and had to actively opt-out of participating. 
C) is likely to be the same as if people were automatically enrolled and had to actively opt-out of participating. 
D) is exclusive,which always makes it more attractive to people. 
A) is likely to be lower than if people were automatically enrolled and had to actively opt-out of participating. 
B) is likely to be higher than if people were automatically enrolled and had to actively opt-out of participating. 
C) is likely to be the same as if people were automatically enrolled and had to actively opt-out of participating. 
D) is exclusive,which always makes it more attractive to people.

Question 13

An important category of bias in human decision making is:

Accepted Answer

A) temptation. 
B) revealed preference. 
C) ease of the decision-making process. 
D) All of these are important sources of bias in decision making. 
A) temptation. 
B) revealed preference. 
C) ease of the decision-making process. 
D) All of these are important sources of bias in decision making.

Question 14

Commitment devices:

Accepted Answer

A) need strong commitments that are hard to get out of in order to be successful. 
B) are never strong commitments that are hard to get out of. 
C) can be successful whether they have strong or weak commitments. 
D) are only successful if they are weak commitments that are easy to change. 
A) need strong commitments that are hard to get out of in order to be successful. 
B) are never strong commitments that are hard to get out of. 
C) can be successful whether they have strong or weak commitments. 
D) are only successful if they are weak commitments that are easy to change.

Question 15

People's preferences about the present are ____________ with their preferences about the future,simply because the future choices are ____________.

Accepted Answer

A) inconsistent;more distant 
B) consistent;more distant 
C) inconsistent;harder to predict 
D) consistent;easier to predict 
A) inconsistent;more distant 
B) consistent;more distant 
C) inconsistent;harder to predict 
D) consistent;easier to predict

Question 16

In terms of framing,we respond better to:

Accepted Answer

A) positive framing. 
B) negative framing. 
C) neither;research has shown that framing ultimately doesn't matter. 
D) Cannot say.It depends on the situation. 
A) positive framing. 
B) negative framing. 
C) neither;research has shown that framing ultimately doesn't matter. 
D) Cannot say.It depends on the situation.

Question 17

Amanda is from Vermont and visiting California for the first time.At home,Amanda always goes jogging early in the morning because it's hottest in the early afternoon.Not knowing what to expect of the weather in California,she decides to go jogging in the early morning during her visit.This decision is an example of:

Accepted Answer

A) loss aversion. 
B) status quo bias. 
C) a heuristic. 
D) positive framing. 
A) loss aversion. 
B) status quo bias. 
C) a heuristic. 
D) positive framing.

Question 18

If you intend to begin jogging one week from today,and next week tell yourself you'll begin in another week,your preferences are:

Accepted Answer

A) time inconsistent. 
B) revealed from your actions. 
C) more accurate in the future. 
D) All of these statements are true. 
A) time inconsistent. 
B) revealed from your actions. 
C) more accurate in the future. 
D) All of these statements are true.

Question 19

Susie doesn't buy ice cream this week at the grocery store because she intends to start a diet in a few days.Her behavior is an example of:

Accepted Answer

A) a commitment device. 
B) status quo bias. 
C) the endowment effect. 
D) positive framing. 
A) a commitment device. 
B) status quo bias. 
C) the endowment effect. 
D) positive framing.

Question 20

When considering choice architecture,a nudge:

Accepted Answer

A) allows participants to choose among only choices that are good for them. 
B) can sometimes accomplish public policy goals in a less expensive way than traditional methods. 
C) presents choices that are similar to participants' ideal choices,but are slightly better than them. 
D) All of these statements are true. 
A) allows participants to choose among only choices that are good for them. 
B) can sometimes accomplish public policy goals in a less expensive way than traditional methods. 
C) presents choices that are similar to participants' ideal choices,but are slightly better than them. 
D) All of these statements are true.

Exam 23: Public Policy and Choice Architecture

A default rule:

An important category of bias in human decision making is:

Commitment devices are:

A heuristic is:

If choice architects frame choices in terms of social norms:

A store is choosing between advertising a credit card fee or a discount for paying cash to its customers.People will care more about:

Choice architecture can:

The most common form of "forced savings" in the U.S.is:

When it's not clear how to translate available information into something personally meaningful,it's:

The organization of the context and process in which people make decisions is called:

Choice architects are likely to make program participation:

When people make a decision to not participate in a program unless they actively enroll for it,program participation:

An important category of bias in human decision making is:

Commitment devices:

People's preferences about the present are ____________ with their preferences about the future,simply because the future choices are ____________.

In terms of framing,we respond better to:

If you intend to begin jogging one week from today,and next week tell yourself you'll begin in another week,your preferences are:

Susie doesn't buy ice cream this week at the grocery store because she intends to start a diet in a few days.Her behavior is an example of:

When considering choice architecture,a nudge:

Economics and Life

Specialization and Exchange

Markets

Elasticity

Efficiency

Government Intervention

Consumer Behavior

Behavioral Economics: A Closer Look at Decision Making

Game Theory and Strategic Thinking

Information

Time and Uncertainty

The Costs of Production

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

The Factors of Production

International Trade

Externalities

Public Goods and Common Resources

Taxation and the Public Budget

Poverty, Inequality, and Discrimination

Political Choices

Measuring the Wealth of Nations

The Cost of Living

Economic Growth

Unemployment and the Demand for Labor

Aggregate Demand and Aggregate Supply

Fiscal Policy

The Basics of Finance

Money and the Monetary System

Inflation

Financial Crisis

Open-Market Macroeconomics

Development Economics

Filters

People's preferences about the present are with their preferences about the future,simply because the future choices are .