Behavioral Economics Extends Traditional Economic Models by

question 55

Multiple Choice

Behavioral economics extends traditional economic models by

• A) including insights from psychology and human cognition models.
• B) modeling behavior rather than prices.
• C) admitting that individuals are irrational.
• D) admitting that incentives are very important.

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Definitions:

CNS

Central Nervous System, comprising the brain and spinal cord, responsible for integrating sensory information and responding accordingly.

Blood-Brain Barrier

A semi-permeable barrier of endothelial cells that prevents most substances in the blood from entering the brain, thereby maintaining the brain's chemical environment.

Toxic Substances

Materials or compounds that can cause harm to living organisms through ingestion, inhalation, or skin absorption.

Neurons

Specialized cells of the nervous system that transmit information through electrical and chemical signals.