Behavioral economists view the standard economic theory of decisions involving time as being too restrictive because people
A) Have lapses in self-control
B) Make systematic errors in forecasting the future
C) Are reluctant to abandon projects after incurring substantial sunk costs, despite low probabilities of success
D) All of these

Question

Quizplus · Accepted Answer

Behavioral economists believe that all of these factors (lapses in self-control, errors in forecasting, and the reluctance to abandon sunk costs) play a role in how individuals make decisions about the use of their time. They argue that traditional economic models that assume people always act rationally and in their own best interest are too simplistic and do not capture the full range of behaviors that are observed in real-world settings.

Behavioral Economists View the Standard Economic Theory of Decisions Involving