Questions & Answers
Browse all 25 questions from the
Southeast Asian Behavioural Economics Challenges study set below.
Each question shows the correct answer — select a study format above to practice interactively.
1
In a densely populated urban area like Jakarta, a government initiative aims to reduce plastic bag usage by introducing a small fee at supermarkets. This fee leverages which behavioural economics concept to encourage a shift from habitual consumption?
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A
Loss aversion
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B
Framing effect
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C
Endowment effect
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D
Anchoring bias
2
Consider mobile money adoption in the Philippines, where users are often hesitant to store large sums due to perceived risks. A successful strategy to overcome this might involve which behavioural intervention?
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A
Presenting long-term benefits over immediate security concerns
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B
Offering small, frequent, and visible rewards for consistent usage
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C
Promoting complex financial literacy programs
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D
Emphasizing the historical stability of traditional banking methods
3
A street food vendor in Bangkok subtly places the more expensive, premium dishes at eye-level on their menu board, while standard options are placed slightly lower. This is an application of:
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A
Availability heuristic
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B
Confirmation bias
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C
Choice architecture (positioning)
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D
Scarcity principle
4
In Malaysia, a campaign to increase organ donation rates focuses on making the opt-out system the default. This strategy primarily aims to influence decisions through:
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A
Reciprocity norm
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B
Social proof
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C
Default bias (status quo bias)
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D
Mental accounting
5
A microfinance institution in Vietnam introduces a 'commitment savings' product where individuals lock away funds for a specific period to achieve a goal, like buying school supplies. This product directly addresses the behavioural challenge of:
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A
Hyperbolic discounting
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B
Bandwagon effect
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C
Dunning-Kruger effect
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D
Optimism bias
6
During a heatwave in Singapore, public transport authorities want to encourage citizens to use the MRT over private cars. A behavioural nudge might involve:
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A
Doubling MRT fares to increase perceived value
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B
Displaying real-time air pollution levels inside buses and at bus stops
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C
Offering a significant discount on parking fees for MRT commuters
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D
Reducing the frequency of MRT services to create scarcity
7
A rice farmer in Cambodia faces uncertainty about adopting a new, higher-yield seed variety. A behavioural intervention that could encourage adoption is:
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A
Mandating the use of the new seeds by decree
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B
Providing substantial upfront subsidies without addressing risk perception
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C
Organizing field days where early adopters share positive testimonials
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D
Focusing solely on the theoretical economic benefits of the new seeds
8
In Myanmar, a campaign to improve handwashing habits among children uses colourful posters featuring popular cartoon characters. This taps into which behavioural principle?
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A
Hindsight bias
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B
Representativeness heuristic
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C
Affect heuristic (emotional appeal)
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D
Procrastination
9
A fintech startup in Indonesia offers a 'round-up' feature for digital payments, where the spare change from each transaction is automatically invested. This is a practical application of:
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A
Attentional bias
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B
Affective forecasting
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C
Automated saving (saving-by-default)
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D
Cognitive dissonance
10
To encourage saving for retirement in the Philippines, where immediate gratification is often prioritized, a common behavioural pitfall to overcome is:
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A
Overconfidence
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B
Present bias (hyperbolic discounting)
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C
Negativity bias
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D
Status quo bias
11
A tourism board in Thailand wants to promote responsible tourism. They might use signage that highlights the majority of tourists who adhere to environmental guidelines, leveraging the principle of:
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A
Authority bias
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B
Anchoring effect
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C
Social proof (descriptive norms)
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D
Halo effect
12
In Vietnam, a public health campaign against smoking might use vivid imagery of the long-term health consequences of smoking on children and family members. This approach is primarily aimed at influencing behaviour through:
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A
Priming
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B
Fear appeals (related to loss aversion)
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C
Mere-exposure effect
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D
Confirmation bias
13
A ride-sharing service in Kuala Lumpur notices a dip in driver availability during non-peak hours. A behavioural incentive to address this could be:
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A
Increasing surge pricing during off-peak times
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B
Offering bonus payments for completing rides during historically low demand periods
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C
Reducing the commission rate for all drivers
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D
Implementing a loyalty program based on total rides completed
14
A mobile app in Cambodia designed to help users track and reduce their food waste might employ which behavioural tool to make progress more salient?
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A
Displaying abstract statistics of waste reduction
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B
Providing personalized weekly summaries with visual progress charts
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C
Suggesting users buy more food to compensate for potential waste
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D
Ignoring individual user data to maintain privacy
15
In Indonesia, when individuals are encouraged to buy insurance, the difficulty in imagining distant future losses (e.g., illness, accident) represents a challenge related to:
-
A
Availability heuristic
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B
Affective forecasting errors
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C
Endowment effect
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D
Confirmation bias
16
A government in Laos implementing a water conservation campaign might use messages that emphasize that 'most households in your neighbourhood are already conserving water.' This is an example of using:
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A
Personalization
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B
Social proof (injunctive norms)
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C
Cognitive dissonance
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D
Framing effect
17
A social enterprise in the Philippines distributing mosquito nets might face resistance due to individuals' perception that they are not personally at high risk. This relates to:
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A
Optimism bias
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B
Availability heuristic
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C
Bandwagon effect
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D
Scarcity principle
18
In Singapore, a policy to encourage cycling might involve creating physically separated bike lanes, thereby making cycling the easiest and safest option. This is a form of:
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A
Rational choice theory
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B
Libertarian paternalism (choice architecture)
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C
Economic deterrence
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D
Utilitarianism
19
A teacher in Thailand uses a sticker system where students earn stickers for completing homework on time, with bonus stickers for exceptional effort. This leverages:
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A
Reciprocity
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B
Loss aversion
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C
Gamification (reward systems)
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D
Authority bias
20
Consider a scenario in Malaysia where consumers are presented with two identical products: one labelled 'Organic' and the other 'Natural'. The 'Organic' label is likely to evoke a stronger positive response due to:
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A
Anchoring bias
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B
Halo effect
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C
Representativeness heuristic
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D
Default bias
21
To combat the common tendency to spend windfalls immediately, a financial advisor in Vietnam might suggest:
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A
Investing the entire windfall in high-risk assets
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B
Putting the windfall into a highly liquid, easily accessible savings account
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C
Setting up an automatic transfer of a portion of the windfall to a long-term investment or savings account
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D
Sharing the windfall with as many people as possible to spread good fortune
22
A company in the Philippines selling artisanal coffee might offer a 'tasting flight' where customers can sample several smaller portions of different coffee beans. This helps overcome which behavioural challenge related to trying new, potentially expensive products?
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A
Endowment effect
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B
Framing effect
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C
Choice paralysis (overchoice)
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D
Status quo bias
23
In a rural community in Cambodia, a health worker promoting vaccinations might use testimonials from respected village elders. This strategy relies on the power of:
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A
Social proof (normative influence)
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B
Availability heuristic
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C
Reciprocity
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D
Anchoring bias
24
A mobile payment app in Indonesia wants to encourage users to pay merchants directly rather than withdraw cash. They could offer a small, immediate discount for direct payments, utilizing the principle of:
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A
Loss aversion
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B
Framing effect
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C
Zero-sum bias
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D
Priming
25
A community-led initiative in Thailand to reduce single-use plastic in a coastal town could use social media campaigns that highlight local influencers and community leaders actively participating in beach clean-ups. This is primarily aimed at fostering:
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A
Authority bias
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B
Social proof (injunctive and descriptive norms)
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C
Confirmation bias
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D
Affect heuristic
