Question 1

A nudge in behavioural economics is:

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Question 2

Rational consumer behaviour assumes that consumers:

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Question 3

Define fixed costs and give one example.

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Question 4

Define fixed costs and give one example.

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Question 5

A nudge in behavioural economics is:

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Question 6

Rational producer behaviour assumes that firms:

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Question 7

Rational producer behaviour assumes that firms:

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Question 8

An example of a default nudge is:

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Question 9

Define variable costs.

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Question 10

Define variable costs.

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Question 11

Rational consumer behaviour assumes that consumers:

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Question 12

An example of a default nudge is:

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Question 13

Define profit and distinguish between normal profit and abnormal profit.

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Question 14

Explain why diseconomies of scale may occur at high levels of output.

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Question 15

Explain one internal economy of scale.

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Question 16

The framing effect occurs when:

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Question 17

Explain how bounded rationality challenges the traditional economic assumption of rational behaviour.

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Question 18

Explain one reason why firms might not always maximise profit in practice.

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Question 19

Bounded rationality, as proposed by Herbert Simon, means that:

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Question 20

Explain how advertising can weaken the assumption of rational decision-making.

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Topic 2.4: Critique of the Maximizing Behaviour of Consumers and Producers Questions

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