Question 1

Informing people of social norms is likely to get:

Accepted Answer

A)   more people to act that way, which is always positive.
B)   more people to act that way, which can be a problem if policymakers are trying to change typical behavior.
C)   more people to act that way, which is always negative.
D)   less people to act that way, because people like to be unique.E) A) and B)
F) B) and C)

Question 2

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

Question 3

We're more likely to make mistakes with situations we face:

Accepted Answer

A)   often, because we pay less attention.
B)   often, because they involve low payoffs.
C)   infrequently.
D)   with little warning.E) All of the above
F) B) and C)

Question 4

All of the following are traditional economic views except:

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)   choice architects have a responsibility to remain neutral when it comes to choices.E) A) and D)
F) A) and B)

Question 5

The success of the SMarT program has proven that changing the way we present options can:

Accepted Answer

A)   affect people's behavior.
B)   help people overcome mental biases.
C)   avoid regret.
D)   All of these statements are true.E) B) and C)
F) A) and D)

Question 6

Commitment devices are:

Accepted Answer

A)   methods to increase the price of your vices.
B)   methods to lower the price of your virtues.
C)   successful whether weak or strong, depending on the situation.
D)   All of these statements are true.E) B) and C)
F) None of the above

Question 7

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 his utility.
D)   All of these statements are true.E) C) and D)
F) All of the above

Question 8

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)   influencing through choice.
B)   nudging.
C)   shifting.
D)   baiting.E) A) and B)
F) A) and D)

Question 9

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

Accepted Answer

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

Question 10

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

Question 11

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

Accepted Answer

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

Question 12

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)   better today than tomorrow.
B)   time inconsistent.
C)   mistakes.
D)   considered bad choices.E) B) and D)
F) None of the above

Question 13

Choice architecture is the:

Accepted Answer

A)   organization of the context and process in which people make decisions.
B)   choices that force utility-maximizing decisions for individuals.
C)   political framework under which policy is made.
D)   the internal mental framework people use in order to make all their decisions.E) B) and D)
F) None of the above

Question 14

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) A) and C)
F) C) and D)

Question 15

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) A) and C)
F) A) and B)

Question 16

The concept of loss aversion is:

Accepted Answer

A)   preferring certain outcomes over uncertain ones.
B)   a general tendency for people to put more effort into achieving gains than avoiding losses.
C)   a general tendency for people to put more effort into avoiding losses than achieving gains.
D)   a spectrum of tolerance for risky situations.E) All of the above
F) C) and D)

Question 17

A person cutting up her credit cards in an effort to curb her spending is an example of:

Accepted Answer

A)   status quo bias.
B)   a commitment device.
C)   the endowment effect.
D)   loss aversion.E) B) and C)
F) None of the above

Question 18

Suppose you were asked,"Can you guess the height of the tallest living man? Is it more than 8 feet?" When people suggest an answer in the question they ask,it is a form of:

Accepted Answer

A)   anchoring.
B)   rule of thumb.
C)   time inconsistency.
D)   positive framing.E) B) and C)
F) C) and D)

Question 19

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

Accepted Answer

A)   it is framed.
B)   often the decision is made.
C)   it is structured in terms of time to make the decision.
D)   large the outcome is.E) B) and C)
F) All of the above

Question 20

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

Exam 23: Public Policy and Choice Architecture

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

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A person cutting up her credit cards in an effort to curb her spending is an example of:

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

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All of the following are traditional economic views except:

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Commitment devices can be:

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

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The concept of loss aversion is:

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

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Status-quo bias is:

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

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Suppose you were asked,"Can you guess the height of the tallest living man? Is it more than 8 feet?" When people suggest an answer in the question they ask,it is a form of:

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

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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:

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Commitment devices are:

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We're more likely to make mistakes with situations we face:

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The success of the SMarT program has proven that changing the way we present options can:

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Choice architecture is the:

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

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Informing people of social norms is likely to get:

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By studying the effects of choice architecture,we can:

Correct AnswerverifiedShow Answer

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

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