What is 'anchoring' in behavioural economics?

Letting a starting value influence your decision

Which of the following is a business strategy based on behavioural economics?

Using a multi-branding strategy

What strategy did the Australian government NOT use during COVID-19 to encourage mask-wearing?

Cash payments for getting vaccinated

Herd behaviour occurs when consumers...

Follow the crowd without independent judgment

What does the concept of 'loss aversion' refer to?

People feel losses more strongly than equivalent gains

What is bounded rationality?

Settling for a satisfactory decision instead of an optimal one

A government 'nudge' aims to...

Gently guide choices without removing freedom

Which of the following is a government incentive strategy?

Medicare rebate for private health insurance

What best describes bounded willpower?

Failing to act in your long-term best interest

Which of the following is an example of bounded self-interest?

Donating to charity despite financial pressure

What is one reason Apple’s marketing strategy is effective?

High-quality customer service and consistent branding

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AOS3 - Behavioural Economics Basics

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Questions 12

Answers

1
What is 'anchoring' in behavioural economics?
Ignoring all prices except the last one seen
Letting a starting value influence your decision
Basing decisions on reviews only
Searching for the average price of all products
2
The ‘better-than-average effect’ demonstrates which behavioural insight?
Anchoring
Overconfidence
Bounded rationality
Herd behaviour
3
Which of the following is a business strategy based on behavioural economics?
Using a multi-branding strategy
Offering equal value across all brands
Lowering input costs
Increasing the price of your product or service
4
What strategy did the Australian government NOT use during COVID-19 to encourage mask-wearing?
A. Education campaigns
Cash payments for getting vaccinated
Disincentives like prohibiting unvaccinated from working in certain jobs
Nudges
5
Herd behaviour occurs when consumers...
Choose products based on price only
Compare all available options logically
Seek out expert advice before purchasing
Follow the crowd without independent judgment
6
What does the concept of 'loss aversion' refer to?
People ignore gains when they are small
People feel losses more strongly than equivalent gains
People are willing to take more risks to win
People avoid all types of financial risk
7
What is bounded rationality?
Having perfect knowledge before deciding
Always choosing the cheapest product
Settling for a satisfactory decision instead of an optimal one
Making choices to maximise utility
8
A government 'nudge' aims to...
Ban unhealthy or unsafe products
Force consumers to make better decisions
Gently guide choices without removing freedom
Increase taxes on luxury goods
9
Which of the following is a government incentive strategy?
Medicare rebate for private health insurance
Tobacco excise tax
Ban on sugary drinks in schools
Fine for not wearing a seatbelt
10
What best describes bounded willpower?
Choosing to invest rather than spend
Always sticking to your budget
Failing to act in your long-term best interest
Prioritising long-term benefits over short-term pleasures
11
Which of the following is an example of bounded self-interest?
Shopping around for the best deal
Refusing to help others
Buying something expensive for yourself
Donating to charity despite financial pressure
12
What is one reason Apple’s marketing strategy is effective?
Focus on physical retail stores only
Low advertising budget
Multi-deal packages
High-quality customer service and consistent branding

AOS3 - Behavioural Economics Basics Flashcards | StudBud