Asked by Ashton Krause on Jul 09, 2024
Verified
A more realistic theory than the traditional theory of consumer behavior would:
A) the context, or setting one is in.
B) take into account the fairness of an economic transaction.
C) introduce some rules of thumb to explain complex behavior that the basic theory cannot explain.
D) do all of the above.
Economic Transaction
An event or agreement in which goods, services, or assets are exchanged between parties for money or its equivalent.
Basic Theory
The foundational concepts and principles that form the base of a particular field of study or science.
Context
The circumstances or setting that surrounds and gives meaning to an event, statement, or idea.
- Comprehend the basic principles of behavioral economics and distinguish its variance from conventional economic theories.
- Understand the confines of fundamental consumer theory in approaching complex real-life circumstances.
Verified Answer
AF
Abeeha FatimaJul 16, 2024
Final Answer :
D
Explanation :
A more realistic theory of consumer behavior would take into account not only the individual's preferences and budget constraints but also the context in which they are making decisions, as well as the fairness of the economic transaction. It may also introduce rules of thumb or heuristics to explain complex behavior that the basic theory cannot fully capture. Therefore, the best choice is D, which includes all of these components.
Learning Objectives
- Comprehend the basic principles of behavioral economics and distinguish its variance from conventional economic theories.
- Understand the confines of fundamental consumer theory in approaching complex real-life circumstances.