Question 1
What is meant by computational weaknesses?
A.
Difficulty calculating probabilities when deciding. B.
Choices that do not maximise long-run welfare. C.
Studies limits to rational choice. D.
Behaviour influenced by others' expectations.
Question 2
What is meant by habit?
A.
Studies limits to rational choice. B.
Choices that do not maximise long-run welfare. C.
Behaviour influenced by others' expectations. D.
Past behaviour influences current choices.
Question 3
What is meant by social norms?
A.
Difficulty calculating probabilities when deciding. B.
Behaviour influenced by others' expectations. C.
Valuing immediate rewards over future costs. D.
Tendency to do nothing or remain unchanged.
Question 4
What is meant by behavioural economics?
A.
Studies limits to rational choice. B.
Driven by mood, habit, anxiety and social norms. C.
Past behaviour influences current choices. D.
Choices that do not maximise long-run welfare.
Question 5
What is meant by inertia?
A.
Past behaviour influences current choices. B.
Tendency to do nothing or remain unchanged. C.
Driven by mood, habit, anxiety and social norms. D.
Choices that do not maximise long-run welfare.
Question 6
What is meant by nudge?
A.
Behaviour influenced by others' expectations. B.
Driven by mood, habit, anxiety and social norms. C.
Studies limits to rational choice. D.
Policy steering choices without bans.
Question 7
Behavioural economics suggests consumers:
A.
May not always maximise utility B.
Ignore prices C.
Always maximise utility D.
Never use habits
Question 8
Inertia means:
A.
Perfect information B.
Always rational choice C.
Maximum profit D.
Resistance to changing behaviour
Question 9
What is meant by irrational behaviour?
A.
Past behaviour influences current choices. B.
Choices that do not maximise long-run welfare. C.
Valuing immediate rewards over future costs. D.
Policy steering choices without bans.
Question 10
What is meant by impulsivity?
A.
Consumers may aim but not always achieve it. B.
Valuing immediate rewards over future costs. C.
Studies limits to rational choice. D.
Tendency to do nothing or remain unchanged.
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