The Three Limitations on Human Rationality That Behavioural Economics Emphasizes
The three limitations on human rationality that behavioural economics emphasizes are
A)bounded rationality, bounded utility, and bounded self-interest.
B)bounded rationality, bounded willpower, and bounded self-interest.
C)bounded utility, bounded willpower, and bounded self-interest.
D)bounded rationality, bounded willpower, and bounded utility.
E)bounded rationality, bounded surplus, and bounded utility.
Behavioural economics and neuroeconomics seek to achieve
A)the reason why we do not always make rational economic decisions.
B)a method of using willpower and self-interest to gain utility maximization.
C)a theory in which consumers are always utility-maximizers.
D)a new method for the human brain to work out rational choice.
E)the rational concepts that support the law of demand and the law of supply.
A)studies the activity of the human brain when a person makes an economic decision.
B)studies psychology by using the economist's toolbox.
C)studies the ways in which limits on the human brain's ability to compute and implement rational decisions influences economic behaviour.
D)was used extensively in the development of marginal utility theory.
E)all of the above
Billy Jean loves to read and she has decided that she will buy all of her books at the bookstore at the outlet mall.One day she is in Chapters and sees a book from the Globe and Mail Best Sellers list that she wants to read and she decides to buy it. Buying the book means that she will not be able to take her Mom out for coffee this week.Billy Jean's decision is an example of