According to Thomas Schelling,cutbacks in the Use of Electricity on Hot

question 43

Multiple Choice

According to Thomas Schelling,cutbacks in the use of electricity on hot summer days is best ensured through:

• A)not trying to sway consumers to cut back on their electricity consumption, since this involves coercive government regulation of a private activity
• B)rules governing electricity consumption, with the imposition of penalties such as higher prices for excess usage
• C)rules governing electricity consumption, but without the imposition of penalties such as higher prices for excess usage
• D)government programs to encourage voluntary rationing of electricity use
• E)banning the use of electric lighting

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Definitions:

Behavioral Economists

Economists who study the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Preferences

The subjective tastes or desires of individuals, affecting their choices among various goods, services, or outcomes.

Discovered

Found or identified after a search, exploration, or investigation, often implying that the object or information was previously unknown or hidden.

Rational Consumers

Individuals who aim to maximize their utility or satisfaction from consumption under the constraints of their budget.