Motivations for behavioral economics include

Question

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The motivation for behavioral economics is that standard economic theory can sometimes lead to unreasonable conclusions about consumer welfare. This is because standard economic theory assumes that individuals are rational and always make choices that maximize their self-interest, which is not always the case in reality. Therefore, behavioral economics provides a more realistic framework for understanding how people make decisions and could lead to better policies that promote consumer welfare. Option A is incorrect because it is inconsistent with the motivation for behavioral economics; option B is incorrect because it is an extreme statement that is unlikely to be true in reality; and option D is incorrect because it is also an extreme statement that is not supported by empirical evidence.

Motivations for Behavioral Economics Include