This chapter presents examples of topics from behavioural economics, a relatively new area within the field of economics. Behavioural economics challenges some of the standard assumptions about how we make choices—for example, the assumption that our preferences are stable over time. In these exercises, you are encouraged to reflect on how bounded rationality, as well as social preferences (such as altruism), can influence our choices—for example, Audrey’s choice between spending money on herself and on her son Brian.