Question 1

In the arena of decision making,the choice that will automatically take place if the chooser fails to make an active decision is called the:

Accepted Answer

A)   processing option.
B)   default option.
C)   choice option.
D)   auto option.E) C) and D)
F) B) and D)

Question 2

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 C)
F) B) and D)

Question 3

Choice architecture focuses on such factors as:

Accepted Answer

A)   the timing of choices.
B)   how different options are described.
C)   Both A and B are true.
D)   Neither A nor B is true.E) B) and C)
F) A) and B)

Question 4

Jessica's workplace is collecting money for a lottery pool.Each employee can choose to contribute $50,with a 1 in 600,000 chance of winning $1 million.If Jessica chooses not to contribute to the lottery pool,she is probably experiencing:

Accepted Answer

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

Question 5

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)   getting the discount rather than avoiding the fee.
B)   avoiding the fee rather than getting the discount.
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.E) B) and D)
F) None of the above

Question 6

If choice architects frame choices in terms of social norms people will:

Accepted Answer

A)   behave with the majority.
B)   be unaffected by what the majority is doing.
C)   behave in the opposite way, because "going rogue" is celebrated in our culture.
D)   behave according to how they view that norm.E) All of the above
F) None of the above

Question 7

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.E) None of the above
F) B) and C)

Question 8

Status-quo bias is:

Accepted Answer

A)   a type of mental barrier to saving.
B)   when people actively make decisions to change something, even if it is fairly difficult to do so.
C)   not overcome in the SMarT program because saving is the default option.
D)   when people have a negative view on the status quo.E) A) and B)
F) B) and D)

Question 9

A store is choosing between advertising a credit card fee or a discount for paying cash to its customers.More customers are likely to pay cash if the store owner advertises:

Accepted Answer

A)   the credit card fee.
B)   the discount for paying cash.
C)   either one; since it's the same outcome, people won't care one way or another.
D)   neither one; since people are not likely to pay cash more regardless of how it's advertised.E) C) and D)
F) B) and D)

Question 10

If someone asked you to predict the price of gas in a month,and you decided to just guess by adding a few cents to the current price of gas,which you know,your answer would exhibit:

Accepted Answer

A)   anchoring.
B)   time inconsistency.
C)   rational expectations.
D)   transitivity.E) A) and D)
F) B) and D)

Question 11

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.E) B) and D)
F) A) and C)

Question 12

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

Accepted Answer

A)   Social Security.
B)   FICA.
C)   unemployment insurance.
D)   Medicare.E) A) and B)
F) A) and C)

Question 13

The average person is more likely to make a mistake choosing ___________ than what to have for dinner due to the complex nature of the topic.

Accepted Answer

A)   how to save for retirement
B)   which college to attend
C)   which type of health plan to choose
D)   All of these statements are true.E) None of the above
F) B) and D)

Question 14

When considering choice architecture,a nudge:

Accepted Answer

A)   is a gentle push in a particular direction.
B)   does not take away any options.
C)   allows anyone who wants to go in a different direction to do so.
D)   All of these statements are true.E) None of the above
F) A) and B)

Exam 23: Public Policy and Choice Architecture

Commitment devices are:

Correct Answer
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The term time inconsistency is used to describe:

Correct Answer
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Jessica's workplace is collecting money for a lottery pool.Each employee can choose to contribute $50,with a 1 in 600,000 chance of winning $1 million.If Jessica chooses not to contribute to the lottery pool,she is probably experiencing:

Correct Answer
verified

A store is choosing between advertising a credit card fee or a discount for paying cash to its customers.More customers are likely to pay cash if the store owner advertises:

Correct Answer
verified

Status-quo bias is:

Correct Answer
verified

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

Correct Answer
verified

The average person is more likely to make a mistake choosing ___________ than what to have for dinner due to the complex nature of the topic.

Correct Answer
verified

If someone asked you to predict the price of gas in a month,and you decided to just guess by adding a few cents to the current price of gas,which you know,your answer would exhibit:

Correct Answer
verified

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

Correct Answer
verified

Choice architecture can:

Correct Answer
verified

Choice architecture focuses on such factors as:

Correct Answer
verified

When considering choice architecture,a nudge:

Correct Answer
verified

If choice architects frame choices in terms of social norms people will:

Correct Answer
verified

In the arena of decision making,the choice that will automatically take place if the chooser fails to make an active decision is called the:

Correct Answer
verified

Exam 23: Public Policy and Choice Architecture

Commitment devices are:

Correct AnswerverifiedShow Answer

The term time inconsistency is used to describe:

Correct AnswerverifiedShow Answer

Jessica's workplace is collecting money for a lottery pool.Each employee can choose to contribute $50,with a 1 in 600,000 chance of winning $1 million.If Jessica chooses not to contribute to the lottery pool,she is probably experiencing:

Correct AnswerverifiedShow Answer

A store is choosing between advertising a credit card fee or a discount for paying cash to its customers.More customers are likely to pay cash if the store owner advertises:

Correct AnswerverifiedShow Answer

Status-quo bias is:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The average person is more likely to make a mistake choosing ___________ than what to have for dinner due to the complex nature of the topic.

Correct AnswerverifiedShow Answer

If someone asked you to predict the price of gas in a month,and you decided to just guess by adding a few cents to the current price of gas,which you know,your answer would exhibit:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Choice architecture can:

Correct AnswerverifiedShow Answer

Choice architecture focuses on such factors as:

Correct AnswerverifiedShow Answer

When considering choice architecture,a nudge:

Correct AnswerverifiedShow Answer

If choice architects frame choices in terms of social norms people will:

Correct AnswerverifiedShow Answer

In the arena of decision making,the choice that will automatically take place if the chooser fails to make an active decision is called the:

Correct AnswerverifiedShow Answer

Correct Answer
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