Behavioral Economics - PPT, video sheet, definition sheet, assignment

Behavioral Economics is new to the updated 2022 IB Economics curriculum. It is also useful for any high school economics or psychology course.

In this pack you get:

A 26 slide power point that features concepts like:

• bounded rationality, bounded selfishness
• Daniel Kahneman's System 1 and System 2
• Cognitive biases - availability bias, confirmation bias, anchoring and framing bias
• Choice architecture - mandated and default choice as well as anchoring and framing
• Nudge theory and real world examples
• In general, how behavioral economics theory has undermined classical economic theory
• In the powerpoint, you get real world examples for each of these topics

You also get a definition sheet for students to complete based on the powerpoint, a question sheet based on the YouTube video "Crash Course Economics - Behavioral Economics" and an student assignment that features a marking scheme.

The assignment asks students to use behavioral economics theory from the perspective of a firm looking to profit maximize. It also asks them to use the theory from the perspective of a government who is trying to encourage merit good consumption and discourage demerit good consumption.