WorksheetsWeek 6-7
Total questions: 10
Worksheet time: 7mins
Which of these is NOT a factor typically included as a factor in rational consumer decisions?
Utility maximisation
Budget Contraints
Self-sacrificing choices
Ordered Preferences
Homo Economicus is the nickname for ...
A rational consumer
An Irrational consumer
An economics teacher
The average economic agent
What does traditional economics theories often fail to include?
That economic agents are limited by how much money they have
That economics agents act irrationally at times and make decisions that do not always serve their most economic benefit
That economic agents have preferences
That economic agents are seeking the best price possible when making purchases
Which of the following terms is NOT considered as "bounded" by behavioural economists in relation to their decision making?
Rationality
Self-interest
Wants
Willpower
Which of the following scenarios is an example of "overconfidence bias" when considering an economic agents "bounded rationality"? (As the answers are longer you have 2 mins to answer this question)
When choosing to buy something very expensive (such as a car or house), consumers are much less fussy about spending money on the optional extras (e.g. marble kitchen benches) than if they were being asked to spend that money on the extras without the expensive major purchase making the extra purchase look cheap by comparison.
If a treatment is stated as having an 80 per cent success rate it is likely to be more palatable than if the same outcome is framed as having a 20 per cent failure rate.
People mistakenly assume that their chances of winning Tattslotto are greater if they choose the numbers themselves than if a computer randomly generates the numbers in a QuickPick.
All new mobile phones come with default settings, and research shows that many people stick with the default settings, even if those settings do not actually suit the customer.
Herd behaviour can be described as....
When confronted by decisions where the outcomes are highly unpredictable, that is, they follow the crowd, or the ‘general consensus’ because it feels safer.
How options or choices are presented and this can influence consumer decision-making.
Consumers place too much weight on a small number of more vivid observations.
Consumers often overestimate their ability to make good decisions and do not acknowledge the limits of their knowledge and understanding
Bounded self interest can be described as....
Many economic agents care about fairness and may accept deals or options that treat them unfairly.
Many economic agents care about fairness and may reject deals or options that treat them unfairly, even if such action is contrary to their self-interest
A need to act in pursuit of one's own need for more needs and wants
A desire to be the leader of an interesting group
In the Ultimatum game we played with $20 dollars what was the least amount offered to the other player? and was it accepted?
$1 and yes
$1 and no
$10 and yes
$10 and no
Which is not an example of an economic actors bounded willpower?
Spending all of your paycheck despite not having any savings to fall back on in times of need
Going to bed early to be prepared for the next day after working a big day at work
Not being able to only eat 1 chip when a bag of chips is opened
Playing a video game till late at night rather than doing the homework that is due the next day
Behavioural economists understand that people's actions are often guided by....
Positive incentives
Negative incentives
Positive and negative incentives
No incentives
