Question 1

Your roommate tells you she's going to join the gym next week.A week and a half goes by and you ask her how the gym is going,and she tells you she's going to wait until the following week.
Your roommate's preferences are:

Accepted Answer

A)  time inconsistent.
B)  better today than tomorrow.
C)  mistakes.
D)  considered bad choices.E) A) and D)
F) A) and C)

Question 2

A person setting up automatic deductions through their employer so a portion of their 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.E) All of the above
F) None of the above

Question 3

Status-quo bias is:

Accepted Answer

A)  a person's choice being influenced by others' opinions.
B)  a reluctance to make active decisions to change something,even if it is fairly easy to do so.
C)  not overcome in the SMarT program because saving is not the default option.
D)  All of these statements are true.E) All of the above
F) A) and D)

Question 4

The average person is more likely to make a mistake choosing ___________ than what to have for dinner.

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) A) and B)
F) All of the above

Question 5

A person committing to carpool with a friend to the gym for daily workouts is an example of:

Accepted Answer

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

Question 6

The Save More Tomorrow (SMarT) program found that:

Accepted Answer

A)  people want to save more than they typically do.
B)  participants quadrupled their savings in just a couple of years.
C)  if the default choice is to save a portion of income,people will save more.
D)  All of these statements are true.E) None of the above
F) A) and C)

Question 7

Choice architecture is:

Accepted Answer

A)  the organization of the context and process in which people make decisions.
B)  the choices that force utility-maximizing decisions for individuals.
C)  the political framework under which policy is made.
D)  None of these statements is true.E) A) and B)
F) None of the above

Question 8

Commitment devices can be:

Accepted Answer

A)  a way to use choice architecture to help you avoid temptation.
B)  formal policies or products.
C)  a way for people to voluntarily restrict their choices in order to make it easier to stick to plans.
D)  All of these statements are true.E) B) and C)
F) B) and D)

Question 9

When shopping online,as part of the check-out process,companies often have a box checked automatically that states you want to receive promotional e-mails from them.The directions instruct you to uncheck the box if you do not wish such correspondence.This practice is a good example of:

Accepted Answer

A)  status-quo bias.
B)  endowment bias.
C)  endowment effect.
D)  time inconsistency.E) B) and C)
F) C) and D)

Question 10

Cyndi says to you,"I'm wondering if I should study abroad in France." You studied in Germany two years ago,and found the cost of living (not counting tuition) to be about $5,000 for a semester,so you say,"I bet it will cost you about $5,000,not counting tuition." Your answer demonstrates:

Accepted Answer

A)  biased expectations.
B)  anchoring.
C)  using a piece of information loosely related and applying it to your guess.
D)  All of these statements are true.E) A) and C)
F) C) and D)

Question 11

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) All of the above
F) A) and B)

Question 12

Knowing that most people do not care to be outliers,one way to get people to behave a certain way is to:

Accepted Answer

A)  tell them everyone else does it.
B)  let them know it is a social norm to behave that way.
C)  encourage the behavior of the majority.
D)  All of these statements are true.E) None of the above
F) All of the above

Question 13

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) B) and D)
F) A) and B)

Exam 23: Public Policy and Choice Architecture

The average person is more likely to make a mistake choosing ___________ than what to have for dinner.

Correct Answer
verified

Commitment devices can be:

Correct Answer
verified

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

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

Choice architecture is:

Correct Answer
verified

When considering choice architecture,a nudge:

Correct Answer
verified

Your roommate tells you she's going to join the gym next week.A week and a half goes by and you ask her how the gym is going,and she tells you she's going to wait until the following week. Your roommate's preferences are:

Correct Answer
verified

A person committing to carpool with a friend to the gym for daily workouts is an example of:

Correct Answer
verified

Status-quo bias is:

Correct Answer
verified

Cyndi says to you,"I'm wondering if I should study abroad in France." You studied in Germany two years ago,and found the cost of living (not counting tuition) to be about $5,000 for a semester,so you say,"I bet it will cost you about $5,000,not counting tuition." Your answer demonstrates:

Correct Answer
verified

Knowing that most people do not care to be outliers,one way to get people to behave a certain way is to:

Correct Answer
verified

The Save More Tomorrow (SMarT) program found that:

Correct Answer
verified

When shopping online,as part of the check-out process,companies often have a box checked automatically that states you want to receive promotional e-mails from them.The directions instruct you to uncheck the box if you do not wish such correspondence.This practice is a good example of:

Correct Answer
verified

Exam 23: Public Policy and Choice Architecture

The average person is more likely to make a mistake choosing ___________ than what to have for dinner.

Correct AnswerverifiedShow Answer

Commitment devices can be:

Correct AnswerverifiedShow Answer

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

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

Choice architecture is:

Correct AnswerverifiedShow Answer

When considering choice architecture,a nudge:

Correct AnswerverifiedShow Answer

Your roommate tells you she's going to join the gym next week.A week and a half goes by and you ask her how the gym is going,and she tells you she's going to wait until the following week. Your roommate's preferences are:

Correct AnswerverifiedShow Answer

A person committing to carpool with a friend to the gym for daily workouts is an example of:

Correct AnswerverifiedShow Answer

Status-quo bias is:

Correct AnswerverifiedShow Answer

Cyndi says to you,"I'm wondering if I should study abroad in France." You studied in Germany two years ago,and found the cost of living (not counting tuition) to be about $5,000 for a semester,so you say,"I bet it will cost you about $5,000,not counting tuition." Your answer demonstrates:

Correct AnswerverifiedShow Answer

Knowing that most people do not care to be outliers,one way to get people to behave a certain way is to:

Correct AnswerverifiedShow Answer

The Save More Tomorrow (SMarT) program found that:

Correct AnswerverifiedShow Answer

When shopping online,as part of the check-out process,companies often have a box checked automatically that states you want to receive promotional e-mails from them.The directions instruct you to uncheck the box if you do not wish such correspondence.This practice is a good example of:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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