Behavioural Economics Quiz 2023

Which of the following concepts is not associated with behavioural economics?

• Satisficing behaviour

• Utility Maximisation

• Bounded Rationality

• Heuristics

Which of the following would not be considered to be a nudge?

• Placing healthy foods at eye level on supermarket shelves.

• Low-fat milk being the default option for hot beverages served at cafes.

• TV commercials promoting physical activity.

• A sugar tax.

When choosing to buy something very expensive, such as a car, people are more likely to spend more on added extras, such as paint protection, than in the case where people are buying just paint protection. In behavioural economics, this would be an example of:

• Overconfidence bias

• Anchoring effect

• Status Quo Bias

• Vividness

Which of these is not a part of the Behavioural Economics viewpoint?

•  

  Consumers are not always motivated by self-interest.

• The ability to make rational decisions by consumers is compromised by numerous internal and external factors.

• Consumers have access to perfect information.

• Consumers are often under time pressure and cannot make rational decisions

Which of the following concepts is not associated with behavioural economics

• Utility Maximisation

• Satisficing behaviour

• Bounded rationality

• Heuristics

Which of the following descriptions is not applicable to the traditional viewpoint of consumer behaviour?

• Consumers have ordered preferences.

• If they can, consumers stick to the status quo when faced with decisions rather than consider other options.

• For consumers, the maximisation of marginal utility is important.

• Consumers spend much time researching their options.

Governments sometimes intervene and use various policies to reduce market failure. Which of the following statements about market failure is least correct?

• Market failure occurs when price signals cause resources to move into areas that reduce society’s general wellbeing.

• Market failure can mean that the production of profitable goods can sometimes reduce society’s general wellbeing.

• Market failure can result in the production of goods and services that involve wider social costs.

• Market failure cannot occur when there is strong competition.

Which statement in relation to behavioural economics is least correct?

• Most consumers have bounded rationality and take short cuts in making decisions.

• Most consumers have biases that can cause them to be non-rational when they make decisions.

• Consumers always seek to maximise satisfaction and utility when they make decisions.

• Sometimes, consumers think of other people when making decisions, even if this means a loss for them.

Feeling hungry after school, you go to the supermarket and instead of buying fresh fruit, you purchase and immediately consume two giant blocks of chocolate. This is likely to be an example of:

• Narrative fallacy

• Over confidence

• Market failure

• Bounded willpower

There are two identical glasses of soft drink — one is labelled ‘half full’ and the other is labelled ‘half empty’. You choose the one marked ‘half full’. Behavioural economics would be most likely to explain that this is as an example of:

• Bounded self interest

• Bounded rationality

• Framing effects

• Herd Behaviour