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A group of six college students observe a fellow student stumble and fall down a flight of stairs. No one checks to see if the student needs help. Which of the following statements BEST illustrates diffusion of responsibility?
Behavioral Economics
An area within economics that examines how psychological, cognitive, emotional, cultural, and social aspects influence the economic choices made by individuals and institutions.
System 1
A term from psychology, referring to the fast, automatic, and often subconscious way of thinking, as opposed to the slower, more deliberate thought processes of System 2.
System 2
A term often used in behavioral economics, referring to slow, deliberative, and analytical thinking, contrasted with fast, instinctive, and emotional 'System 1' thinking.
Neoclassical Assumption
Underlying principles of neoclassical economics that include rationality, individuals maximizing utility, firms maximizing profits, and markets tending toward equilibrium.
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