The Deliberate Imposition of Structure in an Environment to Induce

question 33

Multiple Choice

The deliberate imposition of structure in an environment to induce people to make better choices (for example, etching flies in a urinal) is called:

• A) economic engineering.
• B) choice architecture.
• C) push policy.
• D) enlightened self-interest.

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Definitions:

Compounded Monthly

An interest calculation method where interest earned is added to the principal balance every month, increasing the amount of future interest accrued.

Compounded Semi-Annually

Interest calculation method where the interest is added to the principal biannually, leading to interest on interest.

Quarterly Compounded

Interest on an investment or loan that is calculated and added to the principal balance four times a year.

Nominal Rate

The advertised or stated interest rate on a loan or investment, not accounting for compounding or inflation.