Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
By altering the perceived benefits of choices based on peer behaviors and presentation of options.
B
By ensuring that all choices are presented with equal framing to eliminate bias.
C
By prioritizing individual preferences over societal influences in decision-making.
D
By decreasing the number of choices available to limit decision fatigue.
Understanding the Answer
Let's break down why this is correct
Answer
Social norms and the framing effect play important roles in how people make decisions in behavioral economics. Social norms are the unwritten rules about how to behave in a group, and they can influence people to act in ways that align with what others do. For example, if many people in a community recycle, others may be more likely to recycle too, thinking it’s the right thing to do. The framing effect, on the other hand, refers to how the way information is presented can change our choices. For instance, if a health message says "90% of people who quit smoking live longer," it sounds more appealing than saying "10% of people who smoke die young," even though they convey similar information, leading to better decision-making when nudges are applied.
Detailed Explanation
Social norms shape how we see choices. Other options are incorrect because This answer suggests that all choices are shown the same way; This answer implies that personal choices are more important than what others think.
Key Concepts
Social norms
Framing effect
Behavioral nudges.
Topic
Behavioral Economics and Decision-Making
Difficulty
hard level question
Cognitive Level
understand
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