Asked by April Updegraff on Sep 28, 2024

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_____ assumes that humans may not act rationally because of genetics, learned behavior, and rules of thumb.

A) Rational economics
B) Socialism
C) Cultural relativism
D) National culture
E) Behavioral economics

Behavioral Economics

An area of economic research that incorporates psychological insights into human behavior to explain economic decision-making.

Rational Economics

An approach to economics that assumes individuals make decisions based on logical evaluation of available information, aiming for maximum utility.

Learned Behavior

Actions or reactions that an individual acquires through experience or by being taught.

  • Expound on fundamental economic principles and their importance to global business activities.
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HS
Hailie Saucedaabout 3 hours ago
Final Answer :
E
Explanation :
Behavioral economics assumes that humans may not act rationally because of genetics, learned behavior, and rules of thumb. It recognizes that individuals often make decisions that are influenced by heuristics and biases, and that these decisions may not always lead to optimal outcomes.