A new area of economics studies situations in which people appear to be making choices that do not appear to be economically rational.This area is called
A)behavioral economics.
B)irrational economics.
C)social economics.
D)new wave economics.

Question

Quizplus · Accepted Answer

Behavioral economics is the branch of economics that studies how psychological, social, and emotional factors influence the economic decisions made by individuals and institutions. It explores the situations in which people appear to be making choices that are not necessarily rational from an economic perspective, and tries to explain why this happens. This field of study has become increasingly popular in recent years, as economists have recognized the limitations of the traditional rational-agent model of economic behavior.

A New Area of Economics Studies Situations in Which People