Some Economists Are Suggesting That We Should Use the Insights

question 9

Multiple Choice

Some economists are suggesting that we should use the insights of behavioral economics to

• A) coerce people to make decisions toward improving their happiness.
• B) design elaborate rules to restrict individuals' chances of hurting themselves.
• C) nudge people toward choices that improve their welfare or that of others.
• D) provide huge monetary incentives to people to move them to action.

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Definitions:

Fiscal Policy

involves government spending and tax policies to influence economic conditions, including levels of employment, inflation, and economic growth.

Government Purchases

Expenditures by the government on goods and services that directly affect the economy, including infrastructure and public projects.

Real GDP

Gross Domestic Product adjusted for inflation, reflecting the value of all goods and services produced by an economy in a given year at constant prices.

Net Taxes

The net amount of money paid to the government through taxes after deducting any government transfers or subsidies received.