A "Bad Choice" as Defined in Choice Architecture Is a Choice

question 56

Multiple Choice

A "bad choice" as defined in choice architecture is a choice that:

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

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Definitions:

Holding Cash

Maintaining a portion of one's assets in liquid cash form to meet immediate needs or prepare for future expenses or investment opportunities.

Total Costs

The complete amount of expenses incurred by a business or project, including both fixed and variable costs.

Money Market Instruments

Short-term financial instruments typically with high liquidity and very low risk.

Default Rates

The frequency at which borrowers fail to make payments on their loans or securities according to the terms agreed upon.