2.1 Summary

Question 1

Summary

Answer 1

1. Consumer Behaviour
2. Imperfect Information
3. Aspects of Behavioural Economic Theory
4. Economic Policy

Question 2

1. Consumer Behaviour

Answer 2

1. Individual Demand Theory
2. Rational Economic Decision Making and Economic Incentives
3. Utility Theory
4. Hypothesis of Diminishing Marginal Utility
5. Utility Maximisation
6. Importance of the Margin

Question 3

2. Imperfect Information

Answer 3

1. Importance of Information for Decision Making
2. Significance of Asymmetric Information
3. Market for Lemons

Question 4

3. Aspects of Behavioural Economic Theory

Answer 4

1. Emergence of Behavioural Economics
2. Rational Economic Behaviour Revisited
3. Biases in Decision Making
4. Altruism and Fairness

Question 5

4. Economic Policy

Answer 5

1. Choice Architecture
2. Framing
3. Mandated Choice
4. Restricted Choice
5. Nudge Theory