QUESTION 8 A nudge is any aspect of the choice architecture that alters people's behavior in a predictable way without forbidding any options or significantly changing their economic incentives. Which of the following would not count as a nudge? O In Britain, the government was concerned that citizens were not saving enough for their retirement. Rather than legally requiring citizens to enroll in a pension scheme, the government made pension enrolment an opt-out, rather than an-opt in, system, meaning that, if you didn't want to enroll in a pension scheme, you simply had to call and opt out. O The American grocery store Pay & Save placed green arrows on the floor leading to the fruit and veg aisles to encourage people to eat more fruits and veggies. O The Amsterdam airport installed small airplane shape stickers in the urinals to prevent spillage O Company ABC banned junk food to lower blood pressure of their workers.

QUESTION 8 A nudge is any aspect of the choice architecture that alters people's behavior in a predictable way without forbidding any options or significantly changing their economic incentives. Which of the following would not count as a nudge? O In Britain, the government was concerned that citizens were not saving enough for their retirement. Rather than legally requiring citizens to enroll in a pension scheme, the government made pension enrolment an opt-out, rather than an-opt in, system, meaning that, if you didn't want to enroll in a pension scheme, you simply had to call and opt out. O The American grocery store Pay & Save placed green arrows on the floor leading to the fruit and veg aisles to encourage people to eat more fruits and veggies. O The Amsterdam airport installed small airplane shape stickers in the urinals to prevent spillage O Company ABC banned junk food to lower blood pressure of their workers.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter15: Poverty And Economic Inequality

Section: Chapter Questions

Problem 32CTQ: Exercise 15.2 and Exercise 15.3 asked you to describe the labor-leisure tradeoff for Jonathon....

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15 A libertarian paternalist would prefer to implement policies that a.adjust the incentives of a decision. b.allow individuals to opt-out of the default option. c.require individuals to make a decision. d.randomly assign individuals to an option if they don't make a choice
Exercise 15.2 and Exercise 15.3 asked you to describe the labor-leisure tradeoff for Jonathon. Since, in the first example, there is no monetary incentive for Jonathon to work, explain why he may choose to work anyway. Explain what the opportunity costs of working and not working might be for Jonathon in each example. Using your tables and graphs from Exercise 15.2 and Exercise 15.3, analyze how the government welfare system affects Jonathans incentive to work.
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