Which of the Following Statements Is True of Behavioral Economics

question 24

Multiple Choice

Which of the following statements is true of behavioral economics?

• A) It studied the economic behavior of people belonging to various ethnic and racial groups within the same culture.
• B) It revealed the failure of traditional economic models in accounting for the role of psychological factors in people's economic behavior.
• C) It revealed important distinctions between collectivist cultures and individualist cultures.
• D) It studied how natural selection influenced the economic behavior of people.

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Definitions:

Substantive Law

The law establishing both the rights an individual has in society and also the limits on her conduct.

Tort Action

A lawsuit instigated by an individual who has suffered harm due to another's wrongful act, aiming to obtain a remedy such as monetary compensation.

Hearsay Evidence

Evidence presented in court based on what the witness has heard someone else say, rather than on direct personal knowledge.

Substantive Law

The set of laws that governs how members of a society are to behave. It defines rights and responsibilities in civil law, and crimes and punishments in criminal law.