The Idea of "Nudging" People into Certain Choices Is One

question 299

True/False

The idea of "nudging" people into certain choices is one major contribution of behavioral economics to policy making.

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Definitions:

Operating Leverage

refers to the extent to which a firm utilizes fixed costs in its cost structure, influencing how changes in sales volume affect operating income.

Net Operating Income

This is a company's income after all operating expenses, excluding financial expenses and taxes, have been deducted from total revenue.

Operating Leverage

The degree to which a company's net income can be affected by a change in sales, influenced by the proportion of fixed costs in a company's cost structure.

Salesvolume

The total amount of a product sold within a specific period.