Question 1

Psychological research shows that choices that involve ___________ are likely to turn out worse than those involving __________.

Accepted Answer

A)  complicated information;simple information
B)  simple information;complicated information
C)  low payoffs;high payoffs
D)  high payoffs;low payoffsE) C) and D)
F) All of the above

Question 2

Jessica's workplace provides coffee in the break room that all employees must contribute to monetarily.She has two options.She can either write a check for $50 once a year or have $1 automatically deducted from her paycheck each week (with an option to change plans at any time) .If Jessica continues to stay on the weekly plan,she is probably experiencing:

Accepted Answer

A)  positive framing.
B)  the endowment effect.
C)  loss aversion.
D)  status quo bias.E) B) and D)
F) B) and C)

Question 3

Jim,an avid biker,broke his leg last year and will never be able to use his bike again.He was offered $100 for it last year,but Jim refused to sell it,insisting it was worth more.A year later,he's offered only $75 for it,but Jim still refuses to sell it.Jim's behavior could be explained by:

Accepted Answer

A)  limited processing power.
B)  the endowment effect.
C)  status quo bias.
D)  substitution effect.E) B) and C)
F) A) and B)

Question 4

In a traditional economic view:

Accepted Answer

A)  there is no such thing as a bad choice.
B)  choice architecture is ineffective.
C)  revealed preference shows researchers what the bad choices are.
D)  All of these statements are true.E) None of the above
F) B) and D)

Question 5

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 of these.
D)  The program was designed to overcome neither of these.E) B) and D)
F) All of the above

Question 6

By studying the effects of choice architecture,we can:

Accepted Answer

A)  expand the simplifying assumption that people always make the choices that are best for themselves.
B)  blend the ideas of psychology with core economic beliefs.
C)  open the possibility that we can no longer tell if someone is making a mistake or choosing something that is maximizing their utility.
D)  All of these statements are true.E) A) and D)
F) A) and B)

Question 7

Informing people of social norms is:

Accepted Answer

A)  likely to get more people to act that way,which is always positive.
B)  likely to get more people to act that way,which can be a problem if policymakers are trying to change typical behavior.
C)  likely to get more people to act that way,which is always negative.
D)  None of these statements is true.E) A) and D)
F) All of the above

Question 8

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.E) None of the above
F) A) and D)

Question 9

The term time inconsistency is used to describe:

Accepted Answer

A)  a situation in which we regret choices we make simply because of when we made the choice.
B)  a situation in which we change our minds about what we want simply because of the timing of the decision.
C)  people's inability to correctly predict how their current choices will affect them in the future.
D)  people's inability to make choices today that determine their actions in the future.E) B) and D)
F) C) and D)

Question 10

When it comes to figuring out who wants to be an organ donor,the answer depends on:

Accepted Answer

A)  how you ask the question.
B)  the default rule.
C)  whether presumed consent exists in the organ donation program.
D)  All of these statements are true.E) C) and D)
F) B) and C)

Question 11

The CARD Act,which tells credit card holders how long it will take to pay off their debt if they only make minimum payments,and how much they need to pay in order to pay off the debt in three years,is an example of:

Accepted Answer

A)  disclosing information in more usable ways.
B)  choice architecture that nudges people toward better decisions.
C)  how the presentation of information can affect people's choices.
D)  All of these statements are true.E) A) and C)
F) A) and B)

Question 12

The program Save More Tomorrow (SMarT) is:

Accepted Answer

A)  An experimental "forced savings" program.
B)  the "forced savings" program in Italy.
C)  a voluntary savings program that involves people learning how to find high-interest accounts so their savings is worth more tomorrow.
D)  a voluntary savings program that commits a fraction of future raises to be put directly into savings.E) C) and D)
F) All of the above

Question 13

Choice architects know that whether something feels like a loss or gain often depends on:

Accepted Answer

A)  how it is framed.
B)  how often the decision is made.
C)  how it is structured in terms of time to make the decision.
D)  None of these statements is true.E) A) and B)
F) None of the above

Question 14

A "bad choice" as defined in choice architecture is a choice that:

Accepted Answer

A)  policymakers want to nudge participants away from.
B)  is one that the chooser will regret later.
C)  is considered not optimal by the choice architect.
D)  policymakers consider not optimal for society,despite individual choosers' benefits.E) None of the above
F) C) and D)

Question 15

John is buying a scented candle for his girlfriend.John thinks about her flower-scented perfume,flower-scented air spray,and flower-scented shampoo.He decides to buy her a flower-scented candle.His behavior is:

Accepted Answer

A)  using a heuristic called a rule of thumb.
B)  an example of the endowment effect because she already has flower-scented goods.
C)  an example of loss aversion because he doesn't want to make the wrong choice.
D)  an example of status quo bias because he doesn't want to deviate from her normal choice of scent.E) B) and D)
F) A) and B)

Question 16

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

Accepted Answer

A)  loss aversion.
B)  positive framing.
C)  rule of thumb.
D)  anchoring.E) None of the above
F) C) and D)

Question 17

The implementation of choice architecture that alters people's behavior in a deliberate and predictable way without changing economic incentives much is called:

Accepted Answer

A)  nudging.
B)  influencing through choice.
C)  shifting.
D)  baiting.E) All of the above
F) C) and D)

Question 18

Once people hear what the majority of individuals like them are doing,they are most likely going to choose:

Accepted Answer

A)  the same,because they typically don't like to be outliers.
B)  something better,because they typically want to be special.
C)  something slightly worse,because they don't want to be taken advantage of.
D)  None of these is likely.E) A) and B)
F) A) and C)

Question 19

Status-quo bias is:

Accepted Answer

A)  a type of mental barrier to saving.
B)  a reluctance to make active decisions to change something,even if it is fairly easy to do so.
C)  overcome in the SMarT program because saving is the default option.
D)  All of these statements are true.E) None of the above
F) A) and B)

Question 20

Choice architecture focuses on such factors as:

Accepted Answer

A)  the timing of choices.
B)  how different options are described.
C)  Both of these statements are true.
D)  Neither of these statements is true.E) B) and C)
F) All of the above

Exam 23: Public Policy and Choice Architecture

The term time inconsistency is used to describe:

Correct Answer
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The program Save More Tomorrow (SMarT) is:

Correct Answer
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Informing people of social norms is:

Correct Answer
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Disclosing information in more usable ways to decision-makers:

Correct Answer
verified

Correct Answer
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Once people hear what the majority of individuals like them are doing,they are most likely going to choose:

Correct Answer
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Status-quo bias is:

Correct Answer
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John is buying a scented candle for his girlfriend.John thinks about her flower-scented perfume,flower-scented air spray,and flower-scented shampoo.He decides to buy her a flower-scented candle.His behavior is:

Correct Answer
verified

Psychological research shows that choices that involve _ are likely to turn out worse than those involving .

Correct Answer
verified

Choice architecture focuses on such factors as:

Correct Answer
verified

In a traditional economic view:

Correct Answer
verified

Jim,an avid biker,broke his leg last year and will never be able to use his bike again.He was offered $100 for it last year,but Jim refused to sell it,insisting it was worth more.A year later,he's offered only $75 for it,but Jim still refuses to sell it.Jim's behavior could be explained by:

Correct Answer
verified

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

Correct Answer
verified

A "bad choice" as defined in choice architecture is a choice that:

Correct Answer
verified

The CARD Act,which tells credit card holders how long it will take to pay off their debt if they only make minimum payments,and how much they need to pay in order to pay off the debt in three years,is an example of:

Correct Answer
verified

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

Correct Answer
verified

By studying the effects of choice architecture,we can:

Correct Answer
verified

The implementation of choice architecture that alters people's behavior in a deliberate and predictable way without changing economic incentives much is called:

Correct Answer
verified

When it comes to figuring out who wants to be an organ donor,the answer depends on:

Correct Answer
verified

Choice architects know that whether something feels like a loss or gain often depends on:

Correct Answer
verified

Exam 23: Public Policy and Choice Architecture

The term time inconsistency is used to describe:

Correct AnswerverifiedShow Answer

The program Save More Tomorrow (SMarT) is:

Correct AnswerverifiedShow Answer

Informing people of social norms is:

Correct AnswerverifiedShow Answer

Disclosing information in more usable ways to decision-makers:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Once people hear what the majority of individuals like them are doing,they are most likely going to choose:

Correct AnswerverifiedShow Answer

Status-quo bias is:

Correct AnswerverifiedShow Answer

John is buying a scented candle for his girlfriend.John thinks about her flower-scented perfume,flower-scented air spray,and flower-scented shampoo.He decides to buy her a flower-scented candle.His behavior is:

Correct AnswerverifiedShow Answer

Psychological research shows that choices that involve ___________ are likely to turn out worse than those involving __________.

Correct AnswerverifiedShow Answer

Choice architecture focuses on such factors as:

Correct AnswerverifiedShow Answer

In a traditional economic view:

Correct AnswerverifiedShow Answer

Jim,an avid biker,broke his leg last year and will never be able to use his bike again.He was offered $100 for it last year,but Jim refused to sell it,insisting it was worth more.A year later,he's offered only $75 for it,but Jim still refuses to sell it.Jim's behavior could be explained by:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A "bad choice" as defined in choice architecture is a choice that:

Correct AnswerverifiedShow Answer

The CARD Act,which tells credit card holders how long it will take to pay off their debt if they only make minimum payments,and how much they need to pay in order to pay off the debt in three years,is an example of:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

By studying the effects of choice architecture,we can:

Correct AnswerverifiedShow Answer

The implementation of choice architecture that alters people's behavior in a deliberate and predictable way without changing economic incentives much is called:

Correct AnswerverifiedShow Answer

When it comes to figuring out who wants to be an organ donor,the answer depends on:

Correct AnswerverifiedShow Answer

Choice architects know that whether something feels like a loss or gain often depends on:

Correct AnswerverifiedShow Answer

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Psychological research shows that choices that involve _ are likely to turn out worse than those involving .

Correct Answer
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