The Field of Economics That Draws on Insights from Psychology

question 13

Multiple Choice

The field of economics that draws on insights from psychology to expand models of individual decision making is called:

• A)psychological economics.
• B)behavioral economics.
• C)emotional economics.
• D)decision optimization economics.

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Definitions:

Static Budget

A financial plan that does not change or adjust with variations in business activity levels.

Labor Rate Variance

The difference between the actual cost of direct labor and its expected (or standard) cost during a given period.

Standard Rate

A predetermined cost per unit of measure or rate that is used in budgeting and costing calculations.

Actual Rate

The real, observed rate at which something occurs, often used in financial contexts to specify interest rates or exchange rates.