The study of behavioral economics shows that decision makers:
A) are not limited by cognitive constraints.
B) are incapable of learning from their mistakes.
C) are prone to biases, mistakes, and pitfalls.
D) are guided solely by monetary incentives.
E) make decisions in a highly calculative and rational manner.

Question

Quizplus · Accepted Answer

The study of behavioral economics highlights that decision makers are often not fully rational and can be influenced by cognitive biases, heuristics, and other psychological factors, leading to mistakes and pitfalls in decision-making.

The Study of Behavioral Economics Shows That Decision Makers