Behavioral economics Group of answer choices studies why people choose not to optimize. studies why people optimize. studies why people sometimes don't optimize. studies why people behave badly when buying and selling.

Question

Halle

Business

27 November, 10:37

Behavioral economics Group of answer choices studies why people choose not to optimize. studies why people optimize. studies why people sometimes don't optimize. studies why people behave badly when buying and selling.

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Answers (2)

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Harriet · Answer 1

Studies why people sometimes don't optimize.

Explanation:

This is the statement that best describes behavioral economics. Behavioral economics refers to the study of the intersection between psychology and economics. It studies the decision-making process of people and institutions when faced with economic questions. This area of study questions whether the assumptions of economists do in fact reflect the real behaviour of people. It also asks whether individuals generally act in ways that maximize utility.

Harrison Bullock · Answer 2

The correct answer is letter "C": studies why people sometimes don't optimize.

Explanation:

Behavioral economics studies how individuals make decisions to optimize their benefits. It aims to find out if economist's assumptions of utility and optimization are really accurate compared to their real consumption behavior. The concept usually presumes people analyze the cost-benefit their choices carry to resolve the problem of scarcity which pushes them to make trade-off as efficiently as possible.

Under such a scenario, behavioral economics would study why people do not optimize in some cases.