IB Economics Topic 2.4 Critique of the Maximizing…

Question

HLPaper 1

(a)

the concept of anchoring bias and how it affects consumer decision-making.

[10]

(b)

Using real-world examples, the significance of anchoring bias in influencing market prices and consumer welfare.

[15]

HLPaper 1

(a)

the concept of bounded rationality and how it differs from the assumption of full rationality in the standard economic model.

[10]

(b)

Using real-world examples, the significance of bounded rationality in explaining consumer behaviour and market outcomes.

[15]

HLPaper 1

(a)

the concept of heuristics (rules of thumb) and how they lead to biased consumer decisions.

[10]

(b)

Using real-world examples, the impact of consumer heuristics on market outcomes.

[15]

SL & HLPaper 1

(a)

the relationship between an individual consumer’s demand and market demand.

[10]

(b)

Using real-world examples, the view that the assumptions behind rational consumer choice have very few limitations.

[15]

HLPaper 1

(a)

how consumer nudges can reduce the consumption of demerit goods.

[10]

(b)

Using real-world examples, the effectiveness of ad-valorem taxes in collecting government revenue.

[15]

IB Economics 2.4 Critique of the Maximizing Behaviour of Consumers and Producers Questionbank