Behavioral economics
a. helps explain why economic decision makers maximize either utility or profit
b. assumes that people behave "as if" they are maximizing something.
c. is a subfield of economics, but one that is rejected by most economists
d. explains why irrational behavior is better than typically "rational" behavior.
e. points out that some human behavior is not consistent with any type of maximization
E
You might also like to view...
The imposition of tariffs on imports results in deadweight (triangle) losses. These are
A) production and consumption distortion effects. B) redistribution effects. C) revenue effects D) efficiency effects. E) distortion of incentives.
When a person is risk-preferring, his indifference curves are
a. convex. b. concave. c. linear. d. upward sloping.
Holding other factors constant, if oil prices rise relative to the prices of other products, then the real wages of oil workers will ________ and employment of oil workers will ________.
A. decrease; not change B. decrease; increase C. increase; increase D. increase; decrease
If the price of a slice of pizza falls, Tom can
A. buy more pizza with his paycheck. B. buy fewer soft drinks with his paycheck. C. no longer afford pizza on his paycheck. D. Either A or B is possible.