Behavioural economics & economic policy

Which one of the following best describes mandated choice?

Evaluate the view that the consumption of unhealthy foods can best be reduced through the use of nudges and other techniques from behavioural economics.

Which one of the following is a nudge technique that could be used to encourage healthy eating?

A feature of the UK government’s workplace pension scheme is that employers are required to enrol their employees in the scheme unless the employees make a conscious decision to opt out and join another scheme.

An individual choosing to remain in their workplace pension scheme is an example of a

market failures

OR

Essay 2

Several loss-making retailers including Homebase, House of Fraser and Poundworld have had to decide whether to shut down operations or carry on while making losses. In contrast, the music-streaming firm Spotify was valued at $27 billion in 2018, despite never having made a profit in any year since it was founded. Spotify has been more focused on expanding market share.

The diagram below shows the original market demand and supply curves

The government wishes to meet its energy efficiency target by shifting the market demand curve for loft insulation from D₁ to D₂. Which one of the following policies is most likely to enable the government to achieve its objective?