Question 1

An example of a heuristic is:

Accepted Answer

A)  predatory lending. 
B)  a rule of thumb. 
C)  common sense. 
D)  a framing device. 
A)  predatory lending. 
B)  a rule of thumb. 
C)  common sense. 
D)  a framing device.

Question 2

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)  the status quo in order to entice high enrollment. 
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)  the status quo in order to entice high enrollment.

Question 3

The SMarT program is designed to overcome which common barrier to saving?

Accepted Answer

A) Status-quo bias 
B) An unwillingness to forgo current consumption 
C) The program was designed to overcome both A and B. 
D) The program was designed to overcome neither A nor B. 
A) Status-quo bias 
B) An unwillingness to forgo current consumption 
C) The program was designed to overcome both A and B. 
D) The program was designed to overcome neither A nor B.

Question 4

Suppose studies showed that 12 percent of all teens choose to participate in underage drinking.If policymakers wish to reduce the amount of underage drinking,they should:

Accepted Answer

A)  not share that statistic, and let teens think that it's a huge problem with all teens. 
B)  Informing them will have no impact on their individual behavior. 
C)  let teens know that the great majority of teens currently do not drink. 
D)  The statistic is likely to influence their personal decision, but it is impossible to predict in what way without more information. 
A)  not share that statistic, and let teens think that it's a huge problem with all teens. 
B)  Informing them will have no impact on their individual behavior. 
C)  let teens know that the great majority of teens currently do not drink. 
D)  The statistic is likely to influence their personal decision, but it is impossible to predict in what way without more information.

Question 5

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)  revealed from your actions. 
B)  more accurate in the future. 
C)  irrational. 
D)  time inconsistent. 
A)  revealed from your actions. 
B)  more accurate in the future. 
C)  irrational. 
D)  time inconsistent.

Question 6

A mistake is a choice that:

Accepted Answer

A)  the chooser later regrets. 
B)  the choice architect creates that has unintended consequences. 
C)  society as a whole, but not necessarily the chooser, is left worse-off once it's made. 
D)  policymakers think choosers should not make. 
A)  the chooser later regrets. 
B)  the choice architect creates that has unintended consequences. 
C)  society as a whole, but not necessarily the chooser, is left worse-off once it's made. 
D)  policymakers think choosers should not make.

Question 7

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

Accepted Answer

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

Question 8

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 9

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

Accepted Answer

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

Question 10

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 11

Neutral policy with respect to choice architecture is:

Accepted Answer

A)  not a clear concept across different choice scenarios. 
B)  well established in all choice scenarios. 
C)  the goal of all choice architects. 
D)  generally regulated by state and federal government. 
A)  not a clear concept across different choice scenarios. 
B)  well established in all choice scenarios. 
C)  the goal of all choice architects. 
D)  generally regulated by state and federal government.

Question 12

Suggested donations on fundraising items sent to you in the mail is an example of:

Accepted Answer

A)  loss aversion. 
B)  positive framing. 
C)  anchoring. 
D)  rule of thumb. 
A)  loss aversion. 
B)  positive framing. 
C)  anchoring. 
D)  rule of thumb.

Question 13

A heuristic is a:

Accepted Answer

A)  positive-framing method. 
B)  mental shortcut that helps us make decisions. 
C)  method to increase the price of your vices. 
D)  formal policy used by firms to drive employee behavior. 
A)  positive-framing method. 
B)  mental shortcut that helps us make decisions. 
C)  method to increase the price of your vices. 
D)  formal policy used by firms to drive employee behavior.

Question 14

A person setting up automatic deductions through her employer so a portion of her pay goes into a "Christmas account" is an example of:

Accepted Answer

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

Question 15

The Save More Tomorrow (SMarT)program is an example of a:

Accepted Answer

A)  weak commitment device that was successful. 
B)  strong commitment device that was successful. 
C)  weak commitment device that was unsuccessful. 
D)  strong commitment device that was unsuccessful. 
A)  weak commitment device that was successful. 
B)  strong commitment device that was successful. 
C)  weak commitment device that was unsuccessful. 
D)  strong commitment device that was unsuccessful.

Question 16

Disclosing information in more usable ways to decision-makers:

Accepted Answer

A)  can decrease the occurrence of rational ignorance in decision-making. 
B)  can nudge people toward making better decisions. 
C)  has been useful to organizations like the EPA in getting desired outcomes, like people deciding to buy more gas-efficient cars. 
D)  All of these statements are true. 
A)  can decrease the occurrence of rational ignorance in decision-making. 
B)  can nudge people toward making better decisions. 
C)  has been useful to organizations like the EPA in getting desired outcomes, like people deciding to buy more gas-efficient cars. 
D)  All of these statements are true.

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

When we study choice architecture,we recognize that people make:

Accepted Answer

A)  choices that rarely maximize their well-being. 
B)  mistakes in seemingly random ways. 
C)  mistakes in common and predictable ways. 
D)  choices which always maximize their well-being. 
A)  choices that rarely maximize their well-being. 
B)  mistakes in seemingly random ways. 
C)  mistakes in common and predictable ways. 
D)  choices which always maximize their well-being.

Question 19

In terms of framing,we respond better to:

Accepted Answer

A)  negative framing. 
B)  neither; research has shown that framing ultimately doesn't matter. 
C)  consistent framing. 
D)  positive framing. 
A)  negative framing. 
B)  neither; research has shown that framing ultimately doesn't matter. 
C)  consistent framing. 
D)  positive framing.

Question 20

Which of following is not an important category of bias in human decision making?

Accepted Answer

A)  Temptation. 
B)  Limited processing power. 
C)  Reluctance to change. 
D)  Single-mindedness. 
A)  Temptation. 
B)  Limited processing power. 
C)  Reluctance to change. 
D)  Single-mindedness.

Exam 23: Public Policy and Choice Architecture

An example of a heuristic is:

Choice architects are likely to make program participation:

The SMarT program is designed to overcome which common barrier to saving?

Suppose studies showed that 12 percent of all teens choose to participate in underage drinking.If policymakers wish to reduce the amount of underage drinking,they should:

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

A mistake is a choice that:

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

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

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

An important category of bias in human decision making is:

Neutral policy with respect to choice architecture is:

Suggested donations on fundraising items sent to you in the mail is an example of:

A heuristic is a:

A person setting up automatic deductions through her employer so a portion of her pay goes into a "Christmas account" is an example of:

The Save More Tomorrow (SMarT)program is an example of a:

Disclosing information in more usable ways to decision-makers:

When we study choice architecture,we recognize that people make:

In terms of framing,we respond better to:

Which of following is not an important category of bias in human decision making?

Economics and Life

Specialization and Exchange

Markets

Elasticity

Efficiency

Government Intervention Microeconomics

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

Filters

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