Unit 2: Microeconomics

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

Practice 20 exam-style questions for IB Economics Topic 2.4. Review the question stems below, then unlock the full Question Bank to access markschemes, model answers, and AI grading.

11 mark
Rational consumer behaviour assumes that consumers:
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21 mark
Rational producer behaviour assumes that firms:
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3Define2 marks
2026
Define the term bounded self-control.
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4Define2 marks
2026
Define the term nudge.
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51 mark
An example of a default nudge is:
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61 mark
A nudge in behavioural economics is:
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7Define2 marks
2026
Define the term rational consumer choice.
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8Explain4 marks
Explain the concept of rational producer behaviour.
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9Explain4 marks
Explain how bounded rationality challenges the traditional economic assumption of rational behaviour.
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10Define4 marks
2026
Define the assumption of rational consumer behaviour in microeconomic models.
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11Explain4 marks
Explain how default options work as nudges and why they are effective.
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12Explain4 marks
Explain what a nudge is and give two examples of nudges used in policy.
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131 mark
The concept of marginal utility is important because:
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141 mark
The assumption of rationality in economics implies that:
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151 mark
Anchoring bias refers to:
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161 mark
The framing effect occurs when:
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17Distinguish4 marks
2026
Distinguish between maximising behaviour and satisficing behaviour.
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18Explain4 marks
Explain the concept of diminishing marginal utility and how it relates to the demand curve.
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19Explain4 marks
Explain the concept of loss aversion and give an example of how it affects economic behaviour.
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201 mark
Bounded rationality, as proposed by Herbert Simon, means that:
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