Behavioral economics is an approach to the study of consumer behavior
A. that, in contrast to standard approaches in economics, relies on real-world data to evaluate the usefulness of economic models.
B. that emphasizes the capabilities of individuals to succeed in attaining all their unlimited wants utilizing limited resources.
C. that, in contrast to standard approaches in economics, utilizes the ceteris paribus assumption.
D. that emphasizes psychological limitations and complications that potentially interfere with rational decision making.
Answer: D
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If the marginal propensity to consume (MPC) is 0.8, the multiplier is
A) 0.8. B) 5.0. C) 1.2. D) 0.2.
The price of a financial asset equals the
A) future value of all payments B) sum of all payments C) present value of all future payments D) difference between the future value and present value of all payments