Nudge Theory Overview
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Questions and Answers

What does 'Nudge theory' propose?

  • People's decisions can be influenced by small changes in choice presentation (correct)
  • People's behaviors can be influenced by large changes in choice presentation
  • People's decisions can be influenced by coercion
  • People's behaviors can be influenced by economic incentives

    • What is the key approach of 'Nudge theory'?

  • Using cognitive psychology and behavioral economics to coerce people into decisions
  • Understanding how people think and make choices to influence decisions subtly (correct)
  • Ignoring psychological insights to guide decision-making
  • Incorporating coercion to change economic incentives

    • How does placing bottles of water around you relate to 'Nudge theory'?

  • It nudges people to drink more water by making it easily accessible (correct)
  • It forces people to drink water against their will
  • It has no impact on decision-making
  • It encourages people to drink less water

    • What is the main advantage of 'Nudge theory' for businesses?

    <p>It offers a non-intrusive way to guide customer behavior and decision-making</p> Signup and view all the answers

    How does 'Nudge theory' differ from using coercion or changing incentives?

    <p>It relies on cognitive psychology and behavioral economics</p> Signup and view all the answers

    In the context of 'Nudge theory', what does nudging customers mean for businesses?

    <p>Guiding customers towards desired outcomes subtly</p> Signup and view all the answers

    'Nudge theory' is primarily based on which fields of study?

    <p>Cognitive psychology and Behavioral economics</p> Signup and view all the answers

    According to the passage, what was the key proposition held by employers during the Industrial Revolution regarding labor?

    <p>Labor is unreliable, lazy, and requires tight control and close supervision.</p> Signup and view all the answers

    What was the primary focus of employers during the Industrial Revolution in terms of profitability?

    <p>Reducing labor costs and increasing productivity.</p> Signup and view all the answers

    Which school of thought is discussed in the passage?

    <p>The Classical School</p> Signup and view all the answers

    According to the passage, what was the core proposition of the Scientific–Rational approach?

    <p>Organizations are rational entities, and organization design is a science.</p> Signup and view all the answers

    Which of the following principles was advocated by the Classical school, according to the passage?

    <p>Division of labor and elimination of human fallibility</p> Signup and view all the answers

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