In the context of behavioural economics, 'Default Effects' demonstrate that: MCQ with Answer and Explanation

Question
In the context of behavioural economics, 'Default Effects' demonstrate that:
A. Only active choices matter
B. Defaults have no effect on behaviour
C. People always opt out of defaults
D. The option that is pre-selected for individuals has a disproportionately large influence on choices
Answer: Option D
Solution (By JKSSB Mock Tests)
Default effects show that the pre-set option exerts a strong influence on behaviour; many people stick with the default even when opting out is easy, making defaults a powerful policy tool.
This question belongs to: Economy GK Economy Set 1
Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1
In the context of monetary policy, 'Forward Guidance' refers to:
A. Communication by the central bank about the likely future path of policy rates
B. Only quantitative easing
C. Only changes in the current policy rate
D. Only reserve requirements
Discuss
Get Complete Subject PDF for Economy GK

Correct Answer: Option A

Explanation:
Forward guidance is a policy tool in which the central bank communicates its intentions regarding the future path of the policy rate or other policy instruments in order to influence longer-term rates and expectations.
This question belongs to: Economy GK Economy Set 1
Question #2
The 'Finance Bill' is a Money Bill and can be introduced only in:
A. joint session
B. Lok Sabha
C. Rajya Sabha
D. either House
Discuss
Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
A Money Bill including Finance Bill can be introduced only in Lok Sabha.
This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a component of the Human Development Index?
A. Gender equality only
B. Only environmental sustainability
C. Only income inequality
D. Life expectancy, education and per capita income
Discuss
Get Complete Subject PDF for Economy GK

Correct Answer: Option D

Explanation:
HDI is a composite index based on three dimensions: a long and healthy life (life expectancy), knowledge (education) and a decent standard of living (GNI per capita).
This question belongs to: Economy GK Economy Set 1
Explore All Economy Set 1 MCQs
Today's Top Topics
Economy Set 1 2220
Explore Subjects
Geography GK 6121 Economy GK 2220 Computer 5279 Maths 5575 Accountancy and Statistics 3179
Practice Mix
The 'Tarapur' is famous for:
The rate at which Rs. 36000 amounts to Rs. 46800 in 3 years is
The 'Gandhian Plan' for economic development was formulated by?
Average of 12 numbers 620. If average of 8 is 615, average of remaining 4?
Only ___ minority of students failed.