Unit 2.7 · Role of Government in Microeconomics
Consumer Nudges (HL Only)
AO2AO4HL
Syllabus Requirement
Behavioral tools used to influence choices without restricting options (e.g. layout changes, default options).
Assessment Objectives
AO2Application and Analysis
AO4Use of Appropriate Skills
HLThis topic is assessed at Higher Level only.
Summary
Consumer nudges refer to strategies used by the government to influence consumer behavior in a way that can lead to better outcomes for individuals and society. This topic is important in IB Economics as it explores how government interventions, such as price controls, can affect market dynamics and consumer welfare.