What is behavioural economics?
A) the study of how people make wealth-maximising decisions
B) the study of how people behave in the face of scarcity
C) the study of situations in which people act in ways that are not economically rational
D) the study of how people make decisions at the margin

Question

Quizplus · Accepted Answer

Behavioural economics is the study of situations in which people act in ways that are not economically rational. It tries to explain why people, despite having access to all relevant information, fail to make the best decisions.

What Is Behavioural Economics