Psychologist Daniel Kahneman Describes Two Kinds of Thinking: System 1,which

question 87

True/False

Psychologist Daniel Kahneman describes two kinds of thinking: System 1,which is intuitive and largely unconscious,and System 2,which is analytical and conscious.

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Definitions:

Fundamental Question

Fundamental Question refers to the basic questions any economic system must answer, which include what to produce, how to produce, and for whom to produce.

Guiding Function

The role of prices in directing the allocation of resources and goods in an economy, ensuring resources are used where they are most valued.

Dollar Votes

The concept that consumers show their preferences and influence the market through where they choose to spend their money.

Consumer Sovereignty

The concept that consumers' preferences and decisions dictate the production of goods and services in an economy, emphasizing the power of consumer choice.