Behavioral economics is an approach to the study of consumer behavior
A) that emphasizes psychological limitations and complications that potentially interfere with rational decision making.
B) that emphasizes the capabilities of individuals to succeed in attaining all their unlimited wants utilizing limited resources.
C) that, in contrast to standard approaches in economics, utilizes the ceteris paribus assumption.
D) that, in contrast to standard approaches in economics, relies on real-world data to evaluate the usefulness of economic models.

Question

Quizplus · Accepted Answer

Behavioral economics emphasizes the role of psychological limitations and complications, such as cognitive biases and emotions, in influencing consumer decision making. This approach recognizes that consumers may not always act rationally, as assumed in traditional economic models.

Behavioral Economics Is an Approach to the Study of Consumer