Behavioural economists argue that:
A)people are rational maximisers
B)consumers always choose the best possible course of action
C)people are flexible and change their beliefs in response to new evidence
D)people largely make decisions that are merely good enough

Question

Quizplus · Accepted Answer

Behavioural economists argue that people often make decisions that are merely good enough, rather than the best possible course of action. This is because humans have limited time, attention, and resources, and may not be able to gather or process all available information to make an optimal decision. As a result, people often rely on heuristics, shortcuts, or rules of thumb to make decisions that are satisfactory, but not necessarily optimal.

Behavioural Economists Argue That