According to behavioral economists, the human brain
A) makes most decisions based on careful calculation of benefits and costs.
B) uses evolutionary-developed heuristics to make many decisions.
C) only develops heuristics for decision making after the same decision has been made multiple times using a rational framework of comparing benefits and costs.
D) employs heuristics in decision making that are slow but generally error free.
Correct Answer:
Verified
Q100: In the financial crisis that precipitated the
Q101: Behavioral economics assumes that people are
A)eager and
Q102: Behavioral economists believe that the human brain
Q103: Heuristics
A)are rules of thumb that generate decisions
Q104: Behavioral economists criticize neoclassical models as being
A)messy
Q106: Why do cereals marketers most prefer to
Q107: "Impulse buying" is often the result of
Q108: Regarding people's preferences, behavioral economists observe that
Q109: Neoclassical economic models make simplifying assumptions about
Q110: Neoclassical economics and behavioral economics disagree on
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