Asked by Jawwad Siddiqui on Jul 11, 2024
Verified
The purpose of behavioral economics is to determine why:
A) people maximize utility.
B) firms maximize profit and minimize costs.
C) people make decisions that appear to be irrational.
D) markets usually behave in an efficient manner.
Behavioral Economics
A field of economic research that incorporates psychological insights into human behavior to explain economic decision-making.
Irrational
Describes a decision maker who chooses an option that leaves him or her worse off than choosing another available option.
- Comprehend the core concepts of behavioral economics and their importance in irrational decision-making processes.
Verified Answer
MD
Manlikova DarinaJul 13, 2024
Final Answer :
C
Explanation :
The purpose of behavioral economics is to study why people make decisions that do not always align with standard economic assumptions and appear to be irrational. It examines the various cognitive, emotional, and social factors that influence human behavior in economic decisions.
Learning Objectives
- Comprehend the core concepts of behavioral economics and their importance in irrational decision-making processes.