Economists:

Question

Economists:

Quizplus · Accepted Answer

Behavioural economics incorporates insights from psychology to understand how people make economic decisions, acknowledging the limitations of rationality in decision-making. Option A is incorrect as satisficing is a concept introduced by Herbert Simon, a Nobel Prize-winning economist, as an alternative to rational maximization. Option C is incorrect since economists do consider costs and benefits in decision-making. Option D is incorrect, as individuals and firms often face constraints in the market, such as limited budgets or scarce resources.