The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3

-According to neuroeconomists, our logical brain knows we should spend as much as possible when we have money.

Question

The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3
 
-According to neuroeconomists, our logical brain knows we should spend as much as possible when we have money.

Quizplus · Accepted Answer

Neuroeconomists believe that our behavior when it comes to spending money is influenced by both logical and emotional factors. Sometimes, our emotional brain may take over and lead us to spend impulsively or irrationally, even when it is not in our best interest. Therefore, they do not advocate for spending as much as possible just because we have money.

The Below Figure Shows the Various Combinations of the Goods