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Which term refers to the way an issue is posed that can alter decision-making?

  1. Framing

  2. Mandated Choice

  3. Restricted Choice

  4. Increasing Returns to Scale

The correct answer is: Framing

The correct answer is framing. This term describes how the presentation of information can significantly affect individuals' perceptions and decisions. When an issue is framed in a particular way, it can highlight certain aspects while downplaying others, leading to different choices or preferences. For instance, if a health intervention is described in terms of lives saved versus lives lost, people may react differently based on how the information is presented. The other options relate to different concepts. Mandated choice involves requiring individuals to make a decision about a specific option but does not inherently involve altering how the options are presented. Restricted choice refers to limiting the options available to individuals, which does not encapsulate the aspect of decision-making influenced by how information is framed. Increasing returns to scale describes a situation in production where output increases more than proportionately to inputs, which does not pertain to decision-making in the context of how issues are posed.