Asked by
sukesh rohith
on Nov 25, 2024Verified
Behavioral economic theories are developed based on the following, except
A) assuming that people always make rational decisions and choices.
B) observing people's actual behavior, including irrational behavior.
C) trying to explain people's tendency to make systematic errors in certain situations.
D) dropping the neoclassical assumption that people are fundamentally rational.
Behavioral Economic Theories
A branch of economics that studies how psychological, social, and emotional factors affect economic decisions.
Rational Decisions
Choices made based on logical reasoning and objective analysis of available information and alternatives.
- Acquire knowledge of the key differences between neoclassical economics and behavioral economics.
- Gain an understanding of how behavioral economics integrates aspects from multiple disciplines, focusing on its utilization of psychological understandings.
Verified Answer
SD
Learning Objectives
- Acquire knowledge of the key differences between neoclassical economics and behavioral economics.
- Gain an understanding of how behavioral economics integrates aspects from multiple disciplines, focusing on its utilization of psychological understandings.
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