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Asked by Maritza Cabrera on Jun 22, 2024

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_____ assumes that economic decisions are influenced by human behavior.

A) Rational economics
B) Socialism
C) Capitalism
D) Rational capitalism
E) Behavioral economics

Behavioral Economics

A field of economic research that examines the effects of psychological, social, cognitive, and emotional factors on economic decisions.

Human Behavior

The range of actions and manners exhibited by humans in response to their environment, social dynamics, or internal states.

Economic Decisions

Choices made by individuals or organizations regarding the allocation of resources and the distribution of goods and services, often based on factors like cost, benefits, and economic conditions.

  • Differentiate between behavioral economics and traditional economic models.
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CK
Carly kichlerJun 24, 2024
Final Answer :
E
Explanation :
Behavioral economics is the field that assumes economic decisions are influenced by human behavior, including cognitive biases and social factors. This is in contrast to rational economics, which assumes that individuals make decisions based solely on a rational analysis of information and available options. Socialism and capitalism are economic systems, while rational capitalism is not a distinct field of study.

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