What Two Assumptions Are Traditional Economists More Likely to Make

question 23

Multiple Choice

What two assumptions are traditional economists more likely to make compared to behavioral economists?

• A) Incentives are important, and people base decisions on the economic decision rule.
• B) Purposeful behavior and predictable irrationality.
• C) Rationality and self-interest.
• D) Not all information is available, and the invisible hand is efficient.

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Definitions:

Narrow Deficits

Specific, limited areas of difficulty or deficiency in cognitive function or ability.

Blind Participants

Individuals who are visually impaired taking part in activities or research studies.

Mental Imagery

The cognitive process of simulating sensory experiences in the mind without direct external input, often involving visualization.

Spatial Information

Refers to data about the physical location and shape of objects and their relative positions in space.