Micro T2 - Behavioural Economics and Economic Policy

Question 1

What is choice architecture

Answer 1

The idea that says descisions we make are affected by the layot, sequencing and range of choices we haev aswell

Question 2

Chocie architecthure methdos

Answer 2

framing
nduges
default choice
restrcted choice
mandated choice

Question 3

What is default choice

Answer 3

an option where you are in unless you opt out

Question 4

What is framing

Answer 4

the way info is presenetd for

Question 5

How is choice architecture and framing used

Answer 5

The altering of info provided to influence choices

The focus of loss/gain for consumers from a descion

Question 6

Give an example of framing

Answer 6

better labelling
price information
caloire content etc
ensuring info is presneted

Question 7

what does price information mean in framing

Answer 7

breakign down totoal prices , eg gym memebrships as a motnhly/ weekly fee vs a whole year

Question 8

What are mandated choices

Answer 8

Where choices are required to be made by law

Question 9

What are restricted choices

Answer 9

Where people are offered a limited number of choices so that they are no overwhelmed by the complexity of a situation

Question 10

What happens if people have to many choices

Answer 10

People will make poor choices as they will struggle to make descisions, due to a lack of thought etc.

Question 11

what are nudge polocies

Answer 11

basically chocie architecture

Question 12

what are nudges

Answer 12

changign lcoation or psotition fo shit

Question 13

examples of defautl choice

Answer 13

default having a sald with meals unless you say so

Question 14

examples of restrcited chocies

Answer 14

no take aways near choice
school menu in schools
public smoking areas
liscence place bands

Question 15

what are liscenece place bans

Answer 15

if you have a certain digit on the last number on your number plate you cant use your car that day

Question 16

issues with nudges

Answer 16

too paternalistic
unpredictable
assume consumer behaviour
costly
based on biases
dumbs people down too much
may not be strong enough than traditional

Question 17

evalatuion of them

Answer 17

gov failiure
info provision better
an intergrated way is better
these are only small scale

Question 18

aqa framign example

Answer 18

advertising gym cost at 25/week rathern tahn 1300/year

Question 19

aqa mandated chocie examples

Answer 19

optig in or out for organ donor when applyigng fornational documnets

Question 20

hwo to give exampels of defautl chocie when talkign ab x topci

Answer 20

think abotu hwoa consuemr woudl ebenfit from such a default chocie

eg unelss specificed, peopel are enrolled and given a gym memebership

Question 21

exmaples of nudge aqa

Answer 21

placing helathy food and makign it mroe accessible

Question 22

exampel forestricted chocies

Answer 22

limitign say suppliers fo shit so consuemrs have only few optiosn to evaluate and dotn oevrhtink the laetrnatives