Behavioral economics:
A) invalidates most of the standard economic models because it is difficult to account for irrational behavior.
B) suggests that people are even more rational and calculating than suggested by standard economic models.
C) concludes that, at least for durable goods, demand curves and supply curves both slope upward.
D) provides insights that can, in many cases, easily be accounted for by standard economic models.

Question

Quizplus · Accepted Answer

Behavioral economics does not invalidate standard economic models but rather complements them by providing insights into human behavior that can often be integrated into these models. It acknowledges that while people may not always act in perfectly rational ways as assumed by traditional economics, their behaviors can still be analyzed and understood within an economic framework.

Behavioral Economics