Behavioral Game Theory Assumes

question 55

Multiple Choice

Behavioral game theory assumes

• A)people act rationally.
• B)people are subject to biases that cause them to act irrationally.
• C)that people behave differently when playing games than when "playing for real."
• D)people optimize using all available information.

---

Definitions:

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price, where the quantity supplied equals the quantity demanded.

Progressive Income Tax

A tax system in which the tax rate increases as the taxable income increases, aiming to distribute the tax burden more equitably.

Proportional Tax

A tax system where the rate of tax is constant regardless of the amount subject to tax, meaning everyone pays the same percentage of their income.

Local Tax

Taxes imposed by local government entities, such as cities or counties, typically used to fund local services like schools, roads, and public safety.