Question 1

Joanna is shopping online at one of her favorite retailers and starts the checkout process. The next page contains a pre-checked box that indicates Joanna will receive promotional e-mails from the company she's buying from, and the directions instruct her to uncheck the box if she does not wish to receive these e-mails. This practice is an example of:

Accepted Answer

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

Question 2

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 are true.E) B) and C)
F) C) and D)

Question 3

Informing people of social norms will likely encourage _______ people to act in the same way, which _______.

Accepted Answer

A)  more; is always a good thing
B)  more; can be a problem if policymakers are trying to change typical behavior
C)  more; is always a bad thing
D)  less; occurs because people like to be uniqueE) A) and D)
F) None of the above

Question 4

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 are true.E) None of the above
F) All of the above

Question 5

A choice architect is someone who:

Accepted Answer

A)  determines which choices are available to builders in a specific area.
B)  designs areas that have a lot of choices in determining how the space is used.
C)  is in a position to shape the decision-making environment.
D)  determines how people should make decisions inside of a specific environment.E) A) and C)
F) B) and D)

Question 6

Deondre would like to buy a particular T-shirt from his university bookstore. However, he is only willing to pay $15 for the shirt and it is selling for $30. One day Deondre's family comes to visit, and they gift him the T-shirt. A friend later offers to buy the shirt from Deondre for $20, but he declines, saying that it's worth more. This is an example of:

Accepted Answer

A)  the endowment effect.
B)  status quo bias.
C)  commitment bias.
D)  anchoring.E) C) and D)
F) A) and D)

Question 7

Participation in a program that requires active enrollment is likely to be _______ participation in a program that automatically enrolls people and requires them to opt out of participating.

Accepted Answer

A)  higher than
B)  lower than
C)  equal to
D)  zero, unlikeE) A) and C)
F) None of the above

Question 8

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

Accepted Answer

A)  tell them everyone else behaves that way.
B)  let them know it is a social norm to behave that way.
C)  encourage the behavior of the majority.
D)  All of these are true.E) C) and D)
F) A) and D)

Question 9

Which of the following is not a traditional economic view regarding choice architecture?

Accepted Answer

A)  There is no such thing as a bad choice.
B)  Choice architecture is ineffective.
C)  Revealed preference shows researchers what an individual's preferred choices are.
D)  Choice architects have a responsibility to remain neutral when it comes to choices.E) A) and D)
F) A) and C)

Question 10

A store is deciding whether to advertise a credit card fee or a discount for customers paying with cash. Which advertisement will make customers more likely to pay with cash?

Accepted Answer

A)  The credit card fee
B)  The discount for paying cash
C)  Either one; since it's the same outcome, customers won't care one way or another.
D)  Neither one; customers are not likely to pay with cash regardless of how it's advertised.E) None of the above
F) B) and C)

Question 11

If you intend to begin jogging one week from today, and next week you 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.E) C) and D)
F) A) and D)

Question 12

Which ofthe 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-mindednessE) C) and D)
F) None of the above

Question 13

The SMarT program, which offers employees the option to commit a fraction of future pay raises to a tax-free retirement savings account, is designed to overcome which common barrier to saving? Status quo bias An unwillingness to forgo current consumption The endowment effect

Accepted Answer

A)  II and III only
B)  I and III only
C)  I and II only
D)  I, II, and IIIE) A) and D)
F) None of the above

Question 14

A store must choose whether to advertise that customers who pay by credit card will be charged a fee or that customers who pay in cash will receive a discount. The store can expect more people to switch to paying with cash if they advertise:

Accepted Answer

A)  the cash discount.
B)  the credit card fee.
C)  either; since it's the same outcome, people won't care one way or another.
D)  This cannot be answered without more information.E) B) and C)
F) A) and D)

Question 15

Commitment devices can be: a way to use choice architecture to help you avoid temptation. a tool to help avoid framing bias implemented through formal policies or products.

Accepted Answer

A)  I only
B)  I and III only
C)  II and III only
D)  I, II, and IIIE) A) and B)
F) C) and D)

Question 16

The success of the SMarT program, which offers employees the option to commit a fraction of future pay raises to a tax-free retirement savings account, has proven that changing the way options are presented can:

Accepted Answer

A)  affect people's behavior.
B)  help people overcome mental biases.
C)  allow people to avoid regret.
D)  All of these statements are true.E) None of the above
F) A) and D)

Question 17

Deciding not to buy ice cream while grocery shopping because you intend to start a diet in a few days 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) All of the above

Question 18

Status quo bias:

Accepted Answer

A)  is a type of mental barrier to saving.
B)  occurs when people actively make decisions to change, even if it is fairly difficult to do so.
C)  is when people exhibit when they change their behavior to match others around them.
D)  occurs when people have a negative view on the status quo.E) All of the above
F) B) and D)

Question 19

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

Exam 23: Public Policy and Choice Architecture

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

Correct Answer
verified

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

Correct Answer
verified

Commitment devices can be: a way to use choice architecture to help you avoid temptation. a tool to help avoid framing bias implemented through formal policies or products.

Correct Answer
verified

The SMarT program, which offers employees the option to commit a fraction of future pay raises to a tax-free retirement savings account, is designed to overcome which common barrier to saving? Status quo bias An unwillingness to forgo current consumption The endowment effect

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

The success of the SMarT program, which offers employees the option to commit a fraction of future pay raises to a tax-free retirement savings account, has proven that changing the way options are presented can:

Correct Answer
verified

Deciding not to buy ice cream while grocery shopping because you intend to start a diet in a few days is an example of:

Correct Answer
verified

Participation in a program that requires active enrollment is likely to be _______ participation in a program that automatically enrolls people and requires them to opt out of participating.

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
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Status quo bias:

Correct Answer
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Correct Answer
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A store must choose whether to advertise that customers who pay by credit card will be charged a fee or that customers who pay in cash will receive a discount. The store can expect more people to switch to paying with cash if they advertise:

Correct Answer
verified

A choice architect is someone who:

Correct Answer
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Which of the following is not a traditional economic view regarding choice architecture?

Correct Answer
verified

A store is deciding whether to advertise a credit card fee or a discount for customers paying with cash. Which advertisement will make customers more likely to pay with cash?

Correct Answer
verified

When considering choice architecture, a nudge:

Correct Answer
verified

Informing people of social norms will likely encourage _ people to act in the same way, which _.

Correct Answer
verified

Exam 23: Public Policy and Choice Architecture

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Commitment devices can be: a way to use choice architecture to help you avoid temptation. a tool to help avoid framing bias implemented through formal policies or products.

Correct AnswerverifiedShow Answer

The SMarT program, which offers employees the option to commit a fraction of future pay raises to a tax-free retirement savings account, is designed to overcome which common barrier to saving? Status quo bias An unwillingness to forgo current consumption The endowment effect

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The success of the SMarT program, which offers employees the option to commit a fraction of future pay raises to a tax-free retirement savings account, has proven that changing the way options are presented can:

Correct AnswerverifiedShow Answer

Deciding not to buy ice cream while grocery shopping because you intend to start a diet in a few days is an example of:

Correct AnswerverifiedShow Answer

Participation in a program that requires active enrollment is likely to be _______ participation in a program that automatically enrolls people and requires them to opt out of participating.

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

Status quo bias:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A store must choose whether to advertise that customers who pay by credit card will be charged a fee or that customers who pay in cash will receive a discount. The store can expect more people to switch to paying with cash if they advertise:

Correct AnswerverifiedShow Answer

A choice architect is someone who:

Correct AnswerverifiedShow Answer

Which of the following is not a traditional economic view regarding choice architecture?

Correct AnswerverifiedShow Answer

A store is deciding whether to advertise a credit card fee or a discount for customers paying with cash. Which advertisement will make customers more likely to pay with cash?

Correct AnswerverifiedShow Answer

When considering choice architecture, a nudge:

Correct AnswerverifiedShow Answer

Informing people of social norms will likely encourage _______ people to act in the same way, which _______.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
verified

Informing people of social norms will likely encourage _ people to act in the same way, which _.

Correct Answer
verified