The concept of 'Framing Effects' demonstrates that: MCQ with Answer and Explanation

The concept of 'Framing Effects' demonstrates that:
A. Framing never affects choices
B. Preferences are completely invariant to description
C. Only the objective outcomes matter
D. The way in which a choice is presented can systematically affect decisions even when the underlying outcomes are identical
Answer: Option D
Solution (By JKSSB Mock Tests)
Framing effects occur when logically equivalent descriptions of the same decision problem lead to different choices, violating the invariance assumption of standard rational-choice theory.

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Practice More Economy Set 1 Questions

Question #1
Which of the following was a central objective of the Mahalanobis strategy in the Second Plan?
A. promotion of cottage industries
B. investment in heavy and capital goods industries
C. land reforms
D. export promotion

Correct Answer: Option B


Explanation:
The Mahalanobis strategy emphasized investment in heavy and capital goods industries.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Pradhan Mantri Awaas Yojana - Gramin' aims to provide:
A. pucca houses to rural poor
B. skill training
C. urban housing
D. crop loans

Correct Answer: Option A


Explanation:
PMAY-G provides pucca houses with basic amenities to rural poor households.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'unemployment rate' under usual status considers a person unemployed if:
A. not working for a long period and seeking work
B. not working for one day
C. retired
D. not working for a week

Correct Answer: Option A


Explanation:
Usual status unemployment refers to unemployment over a long reference period.

This question belongs to: Economy GK Economy Set 1