Behavioral economics
A)integrates psychological insights into economic models.
B)relies on the assumption that homo economicus describes economic decision-making.
C)assumes that economic agents have full information about the conditions surrounding their decisions.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Behavioral economics integrates psychological insights into economic models, which means it takes into account the fact that humans do not always make purely rational decisions based on all available information. It challenges the traditional assumption of homo economicus and recognizes that people are often influenced by cognitive biases, social norms, and emotions when making economic decisions. The assumption of full information is also often challenged by behavioral economists.

Behavioral Economics