When People Make a Decision to Not Participate in a Program

question 32

Multiple Choice

When people make a decision to not participate in a program unless they actively enroll for it,program participation:

• A)is likely to be lower than if people were automatically enrolled and had to actively opt-out of participating.
• B)is likely to be higher than if people were automatically enrolled and had to actively opt-out of participating.
• C)is likely to be the same as if people were automatically enrolled and had to actively opt-out of participating.
• D)is exclusive,which always makes it more attractive to people.

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Definitions:

Average Variable Cost Curve

A graph that represents the variable costs of production divided by the quantity of output, illustrating how cost changes with changes in output.

U-Shaped

Describing a type of graph or relationship where the values fall, then rise, forming a shape similar to the letter "U".

Short-Run Cost Function

The relationship between the total cost and output when at least one factor of production is fixed.

Quasi-Fixed Costs

Expenses that are fixed over a certain range of production or time but can change if production or the time period changes significantly.