What are the three limitations on human rationality that behavioral economics emphasizes?
What will be an ideal response?
Behavioral economics studies bounded rationality (the point that people's brain-computing power is limited and this limits people's ability to make rational decisions), bounded willpower (the point that people's will power is limited so that at times they make decisions they know they will later regret), and bounded self-interest (the point that at times people make decisions that do not advance their self-interest).
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A primary function of a central bank is to
A) regulate dividend payments by corporations. B) act as a regulator of banks. C) control the bond market. D) publish statistics on banking and related financial matters.`
A current account deficit is generally a result of imports exceeding exports.
a. true b. false