Sample interview questions: Can you discuss the role of social norms in shaping economic behavior?
Sample answer:
1. Definition of Social Norms:
– Shared, unwritten rules and expectations within a society that guide individuals’ behavior.
– Provide a framework for cooperation, fairness, and resource allocation.
2. Social Norms and Economic Behavior:
– Influence individual decision-making in markets, workplaces, and other economic settings.
– Shape consumption patterns, saving behaviors, labor supply, and investment choices.
3. Normative Influence:
– Social norms can exert normative influence, leading individuals to conform to expected behaviors:
– To gain social approval or avoid disapproval.
– To uphold social values and maintain group cohesion.
4. Reciprocity and Cooperation:
– Social norms promote reciprocity and cooperation:
– Individuals comply with norms to fulfill their obligations and maintain good relationships.
– Cooperation can enhance economic efficiency and productivity.
5. Fairness and Inequality:
– Social norms influence perceptions of fairness and just outcomes:
– Individuals may adjust their economic behavior to align with societal norms of fairness.
– Violation of fairness norms can lead to negative reactions and disrupt economic transactions.
6. Trust and Reputation:
– Social norms foster trust and reputation:
– Individuals conform to norms to maintain a positive reputation and avoid social sanctions.
– Trust facilitates economic interactions, reducing transaction costs and uncertainty.
7. Cultural Differences:
– So… Read full answer
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