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Asked by Pasha Harmidy on Jun 06, 2024

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A key difference between neoclassical economics and behavioral economics is that in behavioral economics context affects preferences.

Neoclassical Economics

An approach in economics focusing on the determination of goods, outputs, and income distributions in markets through supply and demand.

Behavioral Economics

A branch of economics focused on understanding how a range of factors, including psychological, cognitive, emotional, cultural, and social elements, influence the economic decision-making processes of both individuals and institutions.

  • Identify the impact of environmental conditions and psychological determinants on financial behaviors and resolutions.
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Zybrea KnightJun 07, 2024
Final Answer :
True
Explanation :
Behavioral economics recognizes that context, such as the way choices are presented or the social norms surrounding a decision, can affect an individual's preferences and decision-making. Neoclassical economics, on the other hand, assumes that individuals have fixed preferences that are not influenced by external factors.

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