Which of the following is a feature of 'Nudge' theory in behavioural public policy?
A. The complete rejection of any behavioural interventions
B. The use of choice architecture to steer people toward better decisions without restricting their freedom of choice
C. Only financial incentives
D. The use of mandates and bans only
Answer: Option B
Solution (By JKSSB Mock Tests)
A nudge is any aspect of choice architecture that alters people’s behaviour in a predictable way without forbidding any options or significantly changing economic incentives, as popularised by Thaler and Sunstein.
Explanation:
Fiscal policy is formulated by the government (Ministry of Finance). RBI is responsible for monetary policy, currency issue, banker to government and credit control.
Explanation:
The FRBM Act requires the government to present a Medium Term Fiscal Policy Statement, Fiscal Policy Strategy Statement and Macroeconomic Framework Statement.
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