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:

Emotional Effort

The energy expended to manage one's emotions to fulfill job or social roles.

Physical Effort

The exertion of physical energy by an individual to achieve a task or activity.

Metacommunication

Communication about communication, referring to all the nonverbal cues and contextual factors that convey additional meaning to the actual words spoken.

Verbal Communication

The process of conveying messages or information through spoken words.