Asked by Javier Lopez on Jul 16, 2024
Verified
The assumption that consumers have clear preferences is:
A) a main axiom of behavioral economics.
B) an assumption that behavioral economics calls into question.
C) a logical conclusion of observed behavior.
D) a basic assumption of basic economic theory that carries over to behavioral economics.
Clear Preferences
The state of having distinct and definite likes or choices, which can be consistently ranked or ordered by an individual or a group.
Basic Economic Theory
Fundamental principles of economics that explore how resources are allocated, goods and services are distributed, and wealth is created and transferred.
- Absorb the foundational notions of behavioral economics and recognize its deviation from standard economic models.
Verified Answer
KG
Kirti GolichaJul 18, 2024
Final Answer :
B
Explanation :
Behavioral economics challenges the assumption that consumers have clear and stable preferences, and instead suggests that preferences can be context-dependent and influenced by factors such as social norms, emotions, and cognitive biases.
Learning Objectives
- Absorb the foundational notions of behavioral economics and recognize its deviation from standard economic models.