Week 1

Question 1

Classical Economic Theory

Answer 1

Human behavior can be easily explained by assuming that our preferences are well defined, rational, and stable across the time

Question 1

Behavioral Economic

Answer 1

Aims to add psychological aspects to economic as it related to economic decision-making process of individuals and institutions

Question 2

Nudge People’s Behavior

Answer 2

1. Social Proof
2. Loss Aversion
3. Choice Overload
4. Framing
5. Decoy Effect
6. Anchoring

Question 3

Social Proof

Answer 3

Customer look for other people review or information before buying something

Question 4

Loss Aversion

Answer 4

People prefer take risk to avoid loss rather than gain profit

Question 5

Choice Overload

Answer 5

Too much choices can lead to confusion and poor decision making because human will be overwhelmed by the choice

Question 6

Framing

Answer 6

How marketers frame choice by setting the context and presenting the information

Question 7

Decoy Effect

Answer 7

Consumers’ preference for one option can change when a third, similar but less desirable option presented

Question 8

Anchoring

Answer 8

Consumers will rely heavily on the first information offered and use that as benchmark, whether it’s make sense or not

Question 9

Homo Economicus

Answer 9

Potrays humans as rational and full of self-interest (efficient and avoid unnecessary work)

Question 10

Theory Adam Smith Self-Love and Selfishness

Answer 10

Self-love is positive; Selfishness as a form of self-love that results in harm to another person

Question 11

das Adam Smith Problem

Answer 11

He may have seen self-interest in the market as beneficial to society, but at the same time, human morality ensures that people do not harm others in the process.

Question 12

die Umschwungstheorie

Answer 12

Frederik Hayek: A society that initially moves towards more centralized, planned control (such as in socialist systems) might, paradoxically, experience a reversal and shift back towards a more decentralized, free-market system.

Question 13

Stoicism

Answer 13

Stoicism provides a contrast to impulsive or emotion-driven decisions. According to Stoicism, true happiness comes from rational control over one’s emotions.

Question 14

Aristoteles: Zoon Politicon, Chances and Spontanity

Answer 14

Aristotle’s reflections on human unpredictability suggest that economic behavior might not always be determined by pure reason, as chance and spontaneity can disrupt rational decision-making.

Question 15

Morality in the Middle Ages philosophy

Answer 15

Medieval thinkers argued that irrationality could arise from sin or moral failings.

Question 16

Thomas Aquinas and his framework of justice

Answer 16

Aquinas’ work emphasized the need for rationality and moral clarity in decision-making

Question 17

Protestantism and the idea of a fixed order given by God

Answer 17

Protestant ethic suggests that individuals would engage in rational economic activities, driven by the desire to fulfill God’s will and achieve success.

Question 18

Jan Amos Komenský

Answer 18

Irrational behaviors can be corrected or mitigated through proper education and the cultivation of reason.

Question 19

Francis Hutcheson

Answer 19

Individuals could act altruistically, contrary to the purely self-interested rational actor in classical economics.

Question 20

David Hume

Answer 20

Human beings are not always rational actors, as emotions, habits, and passions significantly influence decision-making.

Question 21

5 External Senses of Hutcheson

Answer 21

1. Conciousness
2. Sense of Beauty
3. Public Sense
4. Moral Sense
5. Sense of Honour, Praise, and Blame