Which of the following is a feature of 'Nudge' theory in behavioural public policy? MCQ with Answer and Explanation

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.

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Practice More Economy Set 1 Questions

Question #1
Which of the following is NOT a function of the Reserve Bank of India?
A. Acting as banker to the government
B. Controlling credit
C. Formulating fiscal policy
D. Issuing currency notes

Correct Answer: Option C


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.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Goods and Services Tax' on gym and fitness services is:
A. 12%
B. 18%
C. 28%
D. 5%

Correct Answer: Option B


Explanation:
Gym and fitness services attract 18% GST.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'FRBM Act' requires the government to present a 'Medium Term Fiscal Policy Statement' along with the budget to Parliament.
A. False
B. Only in election years
C. Only for states
D. True

Correct Answer: Option D


Explanation:
The FRBM Act requires the government to present a Medium Term Fiscal Policy Statement, Fiscal Policy Strategy Statement and Macroeconomic Framework Statement.

This question belongs to: Economy GK Economy Set 1