By Studying the Effects of Choice Architecture, We Can

question 59

Multiple Choice

By studying the effects of choice architecture, we can:

• A)expand the simplifying assumption that people always make the choices that are best for themselves.
• B)blend the ideas of psychology with core economic beliefs.
• C)be open to the possibility that we can no longer tell if someone is making a mistake or choosing something that is maximizing his utility.
• D)All of these are true.

---

Definitions:

Dishonored Check

A check that a bank refuses to pay, usually because the account holder does not have enough funds.

Provisional Credit

Temporary credit issued by a bank to an account holder, often while disputes or errors are being resolved.

Dishonor

In finance, the refusal or inability of a drawee of a negotiable instrument to pay the amount due upon presentment.

Actual Payment

The real transfer of funds from one party to another, completing a transaction or settling a debt.