A Level Economics AQA Practice Exam

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Prepare for the A Level Economics AQA Exam with our interactive quiz. Test your knowledge with multiple choice questions and detailed explanations. Equip yourself with the tools needed for success!

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In terms of choice, what is the aim of nudges?

To increase the complexity of choices
To encourage undesirable decisions
To promote desired social behaviors
To eliminate all decision-making options

The correct answer is: To promote desired social behaviors

The aim of nudges is fundamentally about promoting desired social behaviors while still allowing individuals the freedom to make their own choices. Nudges are subtle interventions designed to influence decisions in a predictable way without forbidding any options or significantly changing their economic incentives. They often leverage insights from behavioral economics to guide people towards decisions that are more beneficial for them and society as a whole. For example, placing healthier foods at eye level in a cafeteria encourages healthier eating habits without forcing anyone to choose that option. This approach respects individual autonomy while subtly steering decision-making in a preferred direction. The effectiveness of nudging lies in its ability to harness human psychology, making it a powerful tool for policymakers aiming to improve public welfare.