What do neoclassical economics and behavioral economics believe about giving people options?

A) Both believe that people make better decisions when they are given a greater set of options.
B) Behavioral economics focuses on providing more options; neoclassical economics focuses on helping people make more rational decisions with the options available.
C) Neoclassical economics focuses on providing more options; behavioral economics focuses on helping people make better decisions with the options available.
D) Both believe that people are better off with fewer options, allowing them to spend more time calculating the benefits and costs of each available option.

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Angelique Smith · Accepted Answer

Final Answer : C, Explanation :  Neoclassical economics generally assumes that more options are better because individuals are rational and will choose the best option for themselves. Behavioral economics, on the other hand, recognizes that too many options can lead to decision-making paralysis or suboptimal choices due to cognitive biases, hence it focuses on helping people make better decisions with the options available.

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