Lesson 4.1.2.4
4.1.2.4 Behavioural economics and economic policy Quiz: AQA Economics, Unit 1
20 questions
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Lesson 4.1.2.4, Behavioural economics and economic policy: 20 multiple choice questions for the AQA Economics (7136), Unit 1: Individuals, firms, markets and market failure, written with Revision Ninja.
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The 20 questions
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What term describes how choices are organised and presented to consumers?
- Market structure
- Information failure
- Choice architecture
- Mandated choice
-
What policy intervention gently alters behaviour without restricting options or altering financial incentives?
- Nudge
- Mandated choice
- Subsidy
- Regulatory ban
-
What type of choice applies automatically unless a consumer actively opts out?
- Default choice
- Restricted choice
- Framing choice
- Mandated choice
-
A government introduces automatic enrolment into a pension scheme, with an option to opt out. Which policy tool is this?
- A default choice.
- A mandated choice.
- A restricted choice.
- A tax on savings.
-
Banning the sale of high-sugar drinks in schools is an example of what policy tool?
- Default choice
- Nudge
- Restricted choice
- Mandated choice
-
Requiring citizens to choose whether to be organ donors when renewing a driving licence is what?
- Default choice
- Restricted choice
- Mandated choice
- Framing
-
Presenting a discount as 90% fat-free rather than 10% fat is an example of what?
- Anchoring
- Framing
- Altruism
- Social norm
-
Placing healthy fruit at eye level in a cafeteria is an example of what?
- Mandated choice
- Asymmetric information
- Price discrimination
- Choice architecture
-
What is a main advantage of nudges compared to direct bans or taxes?
- Eliminates market failure
- Guarantees tax revenue
- Removes bounded rationality
- Preserves consumer freedom
-
A pension provider describes a scheme as protecting against a loss of income rather than as offering a gain. Which concept is being used?
- Diminishing returns.
- Price discrimination.
- Economies of scope.
- Framing.
-
Why do default choices have a powerful influence on consumer decisions?
- Price elasticity
- Consumer inertia
- Utility maximisation
- Perfect information
-
What is a major ethical criticism of governments using nudges to influence decisions?
- State paternalism
- Perfect competition
- Fiscal deficit
- Regulatory capture
-
Auto-enrolling workers into workplace pensions unless they opt out is an example of what?
- Restricted choice
- Price ceiling
- Default choice
- Mandated choice
-
What is the key difference between a restricted choice and a nudge?
- Provides extra information
- Changes default settings
- Alters product pricing
- Removes options
-
Behavioural economics helps governments design policy mainly by accounting for what?
- Perfect competition
- Economies of scale
- Consumer biases
- Price inelasticity
-
Pre-ticking an add-on insurance box at an online checkout is an example of which behavioural concept?
- Habitual behaviour
- Mandated choice
- Default choice
- Restricted choice
-
Which term describes structuring options to influence consumer decisions without banning any choices?
- Price mechanism
- Mandated choice
- Command economy
- Choice architecture
-
Forcing individuals to make an explicit decision without offering a default option is known as what?
- Nudge
- Restricted choice
- Default choice
- Mandated choice
-
Presenting a food product as '90% fat-free' instead of '10% fat' is an example of what?
- Framing
- Habituation
- Mandated choice
- Default bias
-
Automatically enrolling workers into a pension scheme while allowing them to opt out uses which nudge tool?
- Negative incentive
- Default choice
- Restricted choice
- Mandated choice
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