Economic Decisions Examples in Behavioral Economics

Economics: Behavioral Economics Concepts

This is an all-inclusive teaching resource carefully designed in accordance with the revamped 2022 IB Economics syllabus. It serves as a useful asset to any school-level economics or psychology course by delving into advanced concepts of behavioral economics, offering a dynamic method for teachers to introduce this burgeoning discipline.

Key Concepts

• Bounded Rationality

• Bounded Selfishness

• Daniel Kahneman's System 1 and System 2 theory

It also covers cognitive biases such as:

• Availability Bias,

• Confirmation Bias, and

• Anchoring and Framing Bias.

In addition, students are acquainted with aspects of choice architecture including mandated choices, default choices along with anchoring and framing approaches. The nuances of nudge theory are explained via real-world case studies thereby rendering content that remains germane to the present economic backdrop.

Educational Aids:
- PowerPoint Presentation
- Definition Sheet
- Question Sheet based on YouTube video "Crash Course Economics - Behavioral Economics"
- Interactive Student Assignment featuring a marking scheme.

The assignment aids learners in applying behavioral economic principles from two facets: one being a profit-maximizing firm's perspective while another being governmental viewpoint aimed at enhancing merit good consumption while reducing demerit good consumption — fostering analytical thinking continuously throughout the process.

Suitable Environments:
This invaluable kit is designed for use during social studies lessons or mainly during economics topics in Grades 11 &12. Its versatility allows flexibility for educators to execute the content in whole-group presentations, small group discussions or even as individual homework assignments.

Concisely, the Economics: Behavioral Economics Concepts bundle is a collection of detailed presentations, interactive activities and organized lesson plans that simplifies studying behavioral economics for students. The complete set is consolidated in a zip file format ensuring simplicity and convenience on part of the educator.