Behavioural economics:
A)brings some of the insights from psychology into the study of economic issues
B)tends to view human behaviour as less complex than that found in conventional economic theory
C)applies the tools of economics to understand the functioning of government
D)includes topics such as adverse selection and moral hazard

Question

Quizplus · Accepted Answer

Behavioural economics incorporates insights from psychology, such as examining how cognitive biases and heuristics affect decision-making, into the traditional economic framework. It does not view human behaviour as less complex than conventional economics, nor does it specifically apply economic tools to the functioning of government. Adverse selection and moral hazard are topics within information economics, which is related to but not equivalent to behavioural economics.

Behavioural Economics