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Austin Mooney
on Oct 08, 2024

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Al regularly pays the full amount of taxes due,even though he could easily hide some of his income and reduce his tax burden,with no risk of getting caught.According to behavioral economics:

A) Al is not economically rational in his behavior.
B) fairness and other moral considerations cause Al to act contrary to his pure self-interest.
C) Al is more ethical than the majority of the population.
D) heuristics are causing Al to act honorably,not a conscious or deliberative thought process.

Behavioral Economics

An area within economics that investigates the influence of emotional, psychological, cognitive, social, and cultural elements on the economic decision-making of both individuals and institutions.

Tax Burden

The financial charge or other levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures.

Economically Rational

Decision-making based on the principle of maximizing benefits while minimizing costs and resources.

  • Understand the impact of moral and ethical considerations on economic decision-making processes.
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Travis PeraltaOct 10, 2024
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