According to behavioral economics,cognitive biases:

A) create errors in decision making,but these errors are random and follow no particular pattern.
B) occur but are not prevalent enough to distort the behavioral predictions of neoclassical economics.
C) are misunderstandings or misperceptions that cause systematic error.
D) are solely the result of faulty heuristics.

Cognitive Biases

Cognitive biases are systematic patterns of deviation from norm or rationality in judgment, often leading to illogical interpretation or decision-making.

Behavioral Economics

A field of economics that examines how psychological, cognitive, emotional, cultural, and social factors affect the economic decisions of individuals and institutions and how those decisions vary from those implied by classical theory.

Systematic Error

A consistent, predictable error present in the method of measurement that affects the accuracy of results.