Chapter 7: Intervention Design and Advocacy Quiz
Test your understanding of behavioral economics, nudge theory, policy design, and advocacy strategies.
1. What is neural habituation and why does it matter for ethics?
- A learning technique for memorizing ethical rules
- The brain's alarm response decreases with repeated exposure, allowing ethical violations to escalate
- A form of meditation that improves moral decision-making
- A neurological disorder that affects ethical reasoning
Show Answer
The correct answer is B. Neural habituation occurs when the brain's alarm response (especially the amygdala) decreases with repeated exposure. In ethics, this means that each ethical violation becomes easier than the last, as the emotional distress that should stop escalation diminishes—creating a "slippery slope" toward larger transgressions.
Concept Tested: Neural Habituation
2. According to behavioral economics, what is "loss aversion"?
- A strategy for avoiding financial losses
- People feel losses about twice as strongly as equivalent gains
- A fear of making any decisions
- The tendency to lose things frequently
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The correct answer is B. Loss aversion means people feel losses about twice as strongly as equivalent gains. This matters for ethics and advocacy because framing messages in terms of "what you'll lose" is more motivating than "what you might gain." "Don't let your children lose..." is more powerful than "Help build a better future..."
Concept Tested: Loss Aversion
See: Loss Aversion
3. What is a "nudge" in behavioral economics?
- A physical push to make someone move
- A change in choice architecture that influences decisions without restricting options
- A mandatory regulation that forces specific behavior
- A financial penalty for wrong choices
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The correct answer is B. A nudge is a change in the choice environment that influences decisions without restricting options or significantly changing economic incentives. Examples include default options (like automatic enrollment in retirement savings) or placing healthy food at eye level in cafeterias.
Concept Tested: Nudge Theory
4. What is the most powerful nudge technique according to the chapter?
- Providing more information
- Making the ethical option the default choice
- Offering financial incentives
- Using fear-based messaging
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The correct answer is B. Default options are the most powerful nudge technique. Making the ethical option what happens automatically leverages status quo bias—people tend to stick with defaults. Organ donation rates jump from 15% to 85% when switching from opt-in to opt-out systems.
Concept Tested: Default Options
See: Default Options
5. What is "social proof" and how is it used in behavioral interventions?
- Legal evidence used in court cases
- People look to others' behavior to determine correct action, so showing ethical behavior as normal encourages adoption
- Mathematical proof of social theories
- Verification that a social media account is authentic
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The correct answer is B. Social proof means people look to others to determine correct behavior, especially under uncertainty. Behavioral interventions leverage this by highlighting when ethical behavior is becoming common: "Join the millions of families already choosing clean energy" works better than "Be a pioneer!"
Concept Tested: Social Proof
See: Social Proof
6. What is the difference between "courage habituation" and habituation to wrongdoing?
- There is no difference; they are the same process
- Courage habituation makes brave acts easier over time; wrongdoing habituation makes ethical violations easier
- Courage habituation only affects athletes
- Wrongdoing habituation is imaginary
Show Answer
The correct answer is B. The same neural mechanism works both ways. Just as repeated wrongdoing decreases the emotional alarm that should stop it, repeated courageous acts strengthen the neural pathways for facing fear. Each brave act makes the next one easier, creating an upward spiral of moral strength.
Concept Tested: Courage Habituation
7. In the Diffusion of Innovation model, what happens at approximately 16% adoption?
- The innovation fails completely
- A "tipping point" occurs where the Early Majority begins to follow
- Innovators stop supporting the change
- Government regulation becomes required
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The correct answer is B. When adoption reaches approximately 16% (Innovators 2.5% + Early Adopters 13.5%), a "tipping point" occurs where the Early Majority begins to follow. Before this point, change feels impossibly slow; after it, change can feel unstoppable.
Concept Tested: Diffusion of Innovation
8. What distinguishes a B-Corporation from a traditional corporation?
- B-Corporations are always larger
- B-Corporation directors are legally required to consider all stakeholders, not just shareholders
- B-Corporations cannot make profits
- B-Corporations only operate internationally
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The correct answer is B. B-Corporations have modified corporate charters that legally require directors to consider all stakeholders (employees, communities, environment) alongside shareholders. This structural change protects leaders making stakeholder-oriented decisions from lawsuits alleging they failed to maximize shareholder value.
Concept Tested: B-Corporations
9. What is "present bias" and how can interventions address it?
- A preference for current news over historical information; provide more recent data
- Valuing immediate rewards over larger future benefits; create immediate rewards for ethical choices
- Being biased toward present company; encourage individual action
- A tendency to be present in the moment; practice mindfulness
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The correct answer is B. Present bias means people value immediate rewards more than future benefits, even when future benefits are larger. Many ethical choices involve short-term costs for long-term benefits. Interventions address this by creating immediate rewards—like instant rebates for energy-efficient appliances that make future savings feel real now.
Concept Tested: Present Bias
10. What are the three components of story-based strategy in advocacy?
- Beginning, middle, and end
- Story of Self, Story of Us, and Story of Now
- Hero, villain, and victim
- Problem, solution, and outcome
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The correct answer is B. Story-based strategy uses three connected narratives: Story of Self (why you are personally committed), Story of Us (what shared experiences and values unite the community), and Story of Now (why we must act immediately). These create emotional connection and urgency that motivate action.
Concept Tested: Story-Based Strategy
11. When do nudges work less well?
- When people already want to do the right thing
- When strong interests oppose the ethical choice or the problem is structural
- When the choice is relatively simple
- When the context can be redesigned
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The correct answer is B. Nudges work less well when strong interests oppose the ethical choice (you're nudging against powerful incentives), when the problem is structural (individual choices can't solve systemic issues), when people actively want the harmful option, or when the nudge is perceived as manipulative.
Concept Tested: Nudge Limitations
12. What is the key difference between shareholder engagement and divestment as advocacy strategies?
- Engagement is always more effective than divestment
- Engagement maintains influence from within while divestment removes financial support and creates stigma
- Divestment is illegal in most countries
- Only large institutions can use engagement strategies
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The correct answer is B. Shareholder engagement maintains a "seat at the table" to influence from within, while divestment removes financial support and creates stigma/moral signals. Each has advantages: engagement allows gradual change but may provide cover for bad actors; divestment makes a clear moral statement but may have limited financial impact. Effective campaigns often use both.
Concept Tested: Shareholder Advocacy and Divestment