What is behavioral economics?
A)the study of how people make wealth-maximizing decisions
B)the study of how people behave in the face of scarcity
C)the study of situations in which people act in ways that are not economically rational
D)the study of how people make decisions at the margin

Question

Quizplus · Accepted Answer

Behavioral economics is the study of situations in which people act in ways that are not economically rational, for example, by making decisions based on emotions, social norms, or cognitive biases. It combines insights from psychology, sociology, and economics to better understand human decision-making and behavior.

What Is Behavioral Economics