Questions
Single choice
Which of the following is a feature of behavioural economics?
Options
A.a. Firms make decisions based on producing goods and services to maximise their profit.
B.b. Humans are not emotional, confused, or easily distracted, weighing up the benefits and costs of decisions.
C.c. Consumers behave in unpredictable ways when making purchases. Decisions are based on social and psychological factors.
D.d. Consumer decisions are based on rational decision-making. The main aim is for consumers to pay a lower price for goods and services.
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Step-by-Step Analysis
To analyze the question, I will evaluate each option in light of what behavioural economics emphasizes.
Option a: 'Firms make decisions based on producing goods and services to maximise their profit.' This describes a traditional, neoclassical view of economics where the focus is on profit maximization and rational optimization at the firm level. Behavioural economics, however, shifts attention to how real human decision-makers are in......Login to view full explanationLog in for full answers
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