Assignment task: How might you explain each of the following behaviors using findings from behavioral economics?
a) When consumers were given an option to select a package of ground turkey labelled "80%lean" or a package labeled "20%fat", most consumers selected the "80% lean" package
b) A profit-maximizing firm made a donation to a community organization
c) When you are too tired to cook, you find a restaurant close by that has food that is "good enough"
d) Looking for a job that is better than your current job 3. In class, we discussed how consumer behavior may be manipulated by advertisers and businesses. The article 'America Beyond Consumerism' (posted on Blackboard) also provides some insight into how consumers may be manipulated by crafty advertisers. What are some of the negative consequences of advertising in the context of consumerism? What kind of policies would you suggest to address this?
What is libertarian paternalism? Discuss at least one policy example (not included in the textbook) to illustrate the concept.