In Choice Architecture, a "Bad Choice" Is One That

question 1

Multiple Choice

In choice architecture, a "bad choice" is one that:

• A)policymakers want to nudge participants away from.
• B)the chooser will regret later.
• C)is considered not optimal by the choice architect.
• D)policymakers consider not optimal for society, despite benefitting the individual chooser.

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Definitions:

BAT Model

A behavioral approach to financial modeling that incorporates psychological factors into market predictions.

Miller-Orr Model

A financial model used to manage cash balances and optimize the level of cash holdings by setting upper and lower limits within which the balance can fluctuate before triggering a transfer of funds.

Cash Balance

The amount of cash a company has on hand, which includes currency, coins, and balances in checking and savings accounts.

Low Cash Balance

A situation where an individual or organization has a minimal amount of cash on hand, potentially affecting their ability to cover short-term liabilities.