Behavioral Economics Helps Explain

question 56

Multiple Choice

Behavioral economics helps explain:

• A) why people are rational.
• B) why people are selfish.
• C) why being selfish is rational.
• D) the degree to which people are altruistic.

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Definitions:

Democratic Institutions

Structures and mechanisms in society that support democracy, including free elections, representative government, and the rule of law.

Lie

An intentionally false statement made with the purpose to deceive others, often leading to mistrust or manipulation in social relations.

Demand

Refers to the desire or need for products and services by consumers, often accompanied by the power to purchase them.

Prices

The amount of money required to purchase goods or services, set by the interplay of supply and demand in a market.