Behavioral Economics

question 64

Multiple Choice

Behavioral economics:

• A) invalidates most of the standard economic models because it is difficult to account for irrational behavior.
• B) suggests that people are even more rational and calculating than suggested by standard economic models.
• C) concludes that, at least for durable goods, demand curves and supply curves both slope upward.
• D) provides insights that can, in many cases, easily be accounted for by standard economic models.

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Definitions:

Reservation Point

In negotiation, the least favorable point at which one will accept a deal, beyond which the negotiation will be aborted or continued efforts for a better deal pursued.

True Conflict Resolution

The genuine and effective resolving of disagreements or differences, aiming for a constructive outcome.

Temporary Settlements

Living arrangements intended to be short-term and not permanent, often associated with displaced communities or emergency situations.

Expedient Solutions

Expedient solutions are practical and quick responses to a problem, devised to bring about an immediate improvement or resolution.