Answer the following statements true (T) or false (F)

1. Automatic payroll deductions help people to fight their time inconsistency problem with regards to saving.
2. Self-control problems, say among people on a diet, is caused by the cognitive bias known as time inconsistency.
3. Sellers' sense of fairness in pricing can sometimes lead them to pricing-decisions that do not maximize profits.
4. Sellers' sense of fairness is always consistent with the notion of rational self-interest of neoclassical economics.
5. The idea of "nudging" people into certain choices is one major contribution of behavioral economics to policy-making.


1. TRUE
2. TRUE
3. TRUE
4. FALSE
5. TRUE

Economics

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