Why Would Adam Smith Love Uber

question 215

Multiple Choice

Why would Adam Smith love Uber?

• A) It was hard to hail a cab in Edinburgh, Scotland during his lifetime.
• B) It decreases competition and increases the price.
• C) It makes it easier for governments to regulate the taxi industry.
• D) It a disruptive technology and increases consumer well-being.

---

Definitions:

Payroll Deductions

Amounts subtracted from an employee's gross pay for taxes, insurance premiums, or other benefits, leading to the net pay the employee receives.

Precommitments

Strategies or actions taken in advance to bind oneself to a specific course of action, often used to influence future decision-making or outcomes.

Present Consumption

The use of goods and services for immediate satisfaction or needs, as opposed to saving or investing for future use.

Behavioral Economists

Economists who study the effects of psychological, social, cognitive, and emotional factors on the economic decisions of individuals and institutions and how those decisions vary from those implied by classical theory.