Asked by Ingrid Depaz on Jul 01, 2024
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Neoclassical economics and behavioral economics
A) are generally viewed as complementary, together providing better understanding of economic behavior than each could on its own.
B) are diametrically opposed to each other.
C) generally address different issues in economics and therefore rarely intersect on the same topic.
D) both start from the premise that people are fundamentally rational in their decision making.
Neoclassical Economics
An economic theory that focuses on how individuals' rational behavior and efficient markets lead to an allocation of resources that maximizes utility and profit.
Behavioral Economics
This discipline of economics examines the role of psychological, cognitive, emotional, cultural, and social aspects in shaping the economic choices of both individuals and institutions.
- Comprehend the essential distinctions between neoclassical economics and behavioral economics.
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Learning Objectives
- Comprehend the essential distinctions between neoclassical economics and behavioral economics.
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