Because the behavioral economics approach suggests many alternative behaviors that people might exhibit if they fail to behave as if they are rational, this approach
A) often fails to provide clearly testable behavioral predictions.
B) reproduces the same predictions as utility analysis.
C) has an over reliance on the rationality assumption.
D) ignores the possibility of bounded rationality.
Answer: A
You might also like to view...
Drug dealers agreeing to sell drugs at a certain price is an example of
A. collective bargaining. B. a monopoly. C. a cartel. D. an entrepreneur.
An increase in population growth in a country
A) always causes an increase in labor resources. B) may not necessarily cause an increase in per capita real GDP. C) may not cause an increase in labor resources in rich countries because employers will cut down on the number of hours required of workers. D) will always cause an increase in per capita real GDP.
In order to maintain stable prices, a central bank must
a. maintain low interest rates. b. keep unemployment low. c. tightly control the money supply. d. sell indexed bonds.
A country's trade balance
A. must be zero. B. must be greater than zero. C. is greater than zero only if exports are greater than imports. D. is greater than zero only if imports are greater than exports.