Disclosing information in more usable ways to decision-makers:
A. increases instances of rational ignorance.
B. can nudge people toward making better decisions.
C. will never affect a person's decision.
D. effectively eliminates certain choices from a person's options.
Answer: B
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In the figure above, what is the marginal social benefit of the 3,000,000th CD per month?
A) $11.00 per CD B) $8.00 per CD C) $6.00 per CD D) None of the above answers is correct.
Suppose that the capital stock initially is 1000, the depreciation rate is 0.08, and investment is 220. This makes the net growth of the capital stock
A) 300. B) 237.6. C) 202.4. D) 140.
According to the theory of rational expectations, the "fooling" of workers in Friedman's model
A) is rational, since sudden unforeseeable changes in aggregate demand can and do occur. B) is rational, since workers are always on their labor supply curve. C) is not rational, since workers should learn to immediately link unexpected wage changes to wrongly-forecast price levels. D) is not rational, since workers are often thrown off of their labor supply curve.
When marketing makes customers better informed about all firms in the market: a. demand curves for specific brands in the market are likely to become less elastic. b. each firm is likely to have less market power
c. firms are better able to foster stronger brand loyalty. d. the market power of individual firms is strengthened.