If Tara Wants to Open Her Own Subway Franchise, She

question 6

True/False

If Tara wants to open her own Subway franchise, she will have to pay an upfront fee as well as royalties to the franchisor.

---

Definitions:

Behavioral Economics

A field of economics that studies how psychological, cognitive, emotional, cultural, and social factors affect the economic decisions of individuals and institutions.

Nudges

Subtle policy or design changes aimed at influencing people's behavior in predictable ways without restricting their choices.

Heuristics

Simple, efficient rules or methods used to make judgments and decisions based on limited information, often leading to satisfactory but not always optimal solutions.

Behavioral Economics

A field of study merging insights from psychology and economics to explore how people make decisions and how these decisions can deviate from those predicted by standard economic theories.