Which of the following is a feature of the 'Save More Tomorrow' programme designed by Thaler and Benartzi? MCQ with Answer and Explanation

Which of the following is a feature of the 'Save More Tomorrow' programme designed by Thaler and Benartzi?
A. A mandatory increase in taxes
B. A programme that ignores behavioural biases
C. An immediate large increase in current contributions
D. A commitment device that allows employees to pre-commit to allocating a portion of future salary increases to retirement savings
Answer: Option D
Solution (By JKSSB Mock Tests)
Save More Tomorrow is a behavioural intervention that invites employees to commit in advance to increasing their retirement contribution rates whenever they receive pay raises, thereby overcoming present bias and inertia.

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Practice More Economy Set 1 Questions

Question #1
Which of the following is a characteristic of the 'Universal Basic Services' proposal?
A. Only cash transfers without any public services
B. Public provision of a range of essential services free at the point of use as a complement or alternative to basic income
C. Only targeted residual welfare
D. Only private provision of all services

Correct Answer: Option B


Explanation:
Universal basic services advocates the collective provision of a set of essential services—such as health, education, housing, transport and information—available to all citizens free or at low cost.

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is NOT a function of SEBI?
A. Protecting the interests of investors
B. Regulating the securities market
C. Issuing currency notes
D. Promoting the development of the securities market

Correct Answer: Option C


Explanation:
Issuing currency notes is the function of RBI. SEBI regulates the securities market, protects investors and promotes the orderly development of the capital market.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Group of 77' is a coalition of:
A. developing countries
B. European countries
C. developed countries
D. oil-exporting countries

Correct Answer: Option A


Explanation:
The G77 is a coalition of developing countries at the United Nations.

This question belongs to: Economy GK Economy Set 1