Behavioral economics recognizes that people use System 1 to make decisions more often than they use System 2.Which of the following is an implication of that decision-making process?

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Behavioral economics recognizes that people often use System 1, which is intuitive and automatic, to make decisions rather than System 2, which is analytical and deliberate. This implies that a majority of decisions are not made according to the neoclassical assumption of rational behavior, which assumes that people always make decisions based on careful calculation of costs and benefits. Instead, people often rely on heuristics and biases that can lead to irrational decision-making. Therefore, behavioral economics suggests that the neoclassical model may not accurately predict outcomes in all cases.

Behavioral Economics Recognizes That People Use System 1 to Make