Which of the following is true of behavioral economics?
A) It uses insights solely from economics and mathematics.
B) It shows that people always behave rationally.
C) It finds that people behave in a predictable manner.
D) It indicates that people invariably act in their best interests.
E) It draws insights primarily from sociology.

Question

Quizplus · Accepted Answer

Behavioral economics integrates insights from psychology with economic theory to explain why people sometimes make irrational decisions and to understand how their behavior does not always follow the predictions of traditional economic models. It acknowledges that people can behave in predictable, albeit not always rational, ways due to cognitive biases, emotions, and social influences.

Which of the Following Is True of Behavioral Economics