Neutral policy with respect to choice architecture is:
A. the goal of all choice architects.
B. not a clear concept across different choice scenarios.
C. well established in all choice scenarios.
D. generally regulated by state and federal government.
Answer: B
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Ellie and Jenny both brought grapes and crackers in their school lunches. If they have different marginal rates of substitution of grapes for crackers, their parents have not allocated lunch resources efficiently.
Answer the following statement true (T) or false (F)
Explain why distributing $500 worth of food stamps to someone is not the same thing economically speaking as giving them $500 in cash? Why might the cash option make the poor better off than food stamps?
What will be an ideal response?
State and local governments subsidize college students with grants and low-interest loans. The loans and subsidies are examples of
A) emission allowances. B) Coase subsidies. C) Pigovian subsidies. D) positive externalities.
In the absence of property rights, inventors have ________ incentive to invest in innovations and ________ incentive to disclose how to use and make their innovations.
A) less; less B) more; less C) more; more D) less; more