Economics Of Safety And Security Lecture Notes + Mock Exam

Nudging {Ans: The use of subtle interventions to encourage individuals to make choices.}Gross Domestic Product (GDP) {Ans: The market value of all final goods and services produced within the border of a given country.}Neoclassical economic growth model {Ans: Hours of work X the labour productivity}Aggregated Demand {Ans: Total spending on domestic goods and services --> C+I+G+NX}Duration neglect {Ans: Tendency to remember things based on their ending only.}Libertarian paternalism {Ans: Affecting behaviour while also respecting freedom of choice.}Affect heuristic {Ans: Assessing the outcome based on how you feel about it.}Descriptive social norms {Ans: Inform what the majority of respondents do.}Discount rate {Ans: Measure of impatience. People value present benefits more highly than future benefits.}Political science interpretation effectiveness sanctions {Ans: Achievement of the declared political objectives.}Free riding {Ans: Someone receives the benefits from something, but does not bear the costs.}Risk {Ans: The probability of an adverse event occuring}Countries more creditworthy for borrowing {Ans: The Democratic Advantage, Central Banks and Creditors in Government.}Game theory {Ans: Theory which studies what happens when self-interested agents interact.}Economists interpretation effectiveness sanctions {Ans: In terms of economic damage}Bilateral trade reducing conflict {Ans: