Under a government initiative to boost national savings, a retail bank automatically sets up an emergency savings sub-account for all new current account holders, transferring 10 GBP per month from their main account unless they check a box to opt out.
An account holder who allows these transfers to continue without taking any action is most clearly demonstrating:
the cognitive bias of anchoring, where the 101010 GBP transfer acts as a psychological reference point.
the influence of choice architecture through a default option.
the application of a heuristic to simplify complex intertemporal consumption choices.
the effect of asymmetric information, where the bank possesses superior knowledge of savings benefits.
45 exam-style questions on AQA A Level Economics 1.2 Individual economic decision making (A-level only), covering 1.2.1 Consumer behaviour, 1.2.2 Imperfect information, 1.2.3 Aspects of behavioural economic theory, and 1.2.4 Behavioural economics and economic policy. Each one has a worked solution and a mark scheme showing where the marks go.