Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Question
Chapter 21, Problem 13E
To determine
To explain:
The purpose of studying neuroeconomics and behavioral economics and the reason of over-confidence in people.
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What is the purpose of the two fields of study neuroeconomics and behavioral economics?why might people tend to be overconfident?
why is behavioral economic beliefs better than traditional economic
Behavioral economics helps explain: which of the following?????????????
a)why people are rational.
b)why people are selfish.
c)why being selfish is rational.
d)the degree to which people are altruistic.
Give typing answer with explanation and conclusion
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- What is loss aversion? Explain how the topic is related to behavioral economics? Give at least two examples.arrow_forwardWhat is the goal of behavioral economics? Group of answer choices To eliminate the consumers’ state of mind from consideration in economic analysis. To shift economic theory from a mathematical base to more of a psychological study. To integrate the insights of psychology into economics to enrich our understanding of decision-making. To study consumer behavior over time rather than behavior in the moment and integrate these insights in economic analysis.arrow_forwardIn Behavioral Economics, what does it mean to say that people like to “play with the house’s money”? What is wrong with that phrase?arrow_forward
- An economics professor finds that he strictly prefers a $10 bottle of wine over an $8 bottle, and a $12 bottle over a $10 bottle, and so on, but an $8 bottle over a $200 bottle. Explain why this makes him irrational according to a behavioral economics theory.arrow_forwardOne topic of behavioral economics is?arrow_forwardAccording to behavioral economics, consumers A. do not always behave rationally because they fail to ignore sunk costs. B. always behave rationally because they account for sunk costs. C. always behave rationally because they take into account monetary costs and nonmonetary opportunity costs. D. do not always behave rationally because they take into account nonmonetary opportunity costs. E. do not always behave rationally because they accurately project their future behavior.arrow_forward
- The fundamental concept in behavioral economics is that due to psychological phenomena, individuals may behave in ways that were previously believed to be irrational according to classical economic theory. Choose T or F: a. True b. Falsearrow_forwardSuppose you are designing an intervention to increase daily physical activity among adults. Describe how you would draw on concepts from behavioral economics to design the intervention.arrow_forwardPeer pressure is an important influence on the behavior of youngsters. For instance, many preteens begin smoking because their friends pressure them into being “cool” by smoking. Using utility theory, how would you explain peer pressure? How would this compare with the explanations provided by behavioral economics and neuroeconomics?arrow_forward
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