The Following Are Major Observations Made by Behavioral Economists Regarding

question 175

Multiple Choice

The following are major observations made by behavioral economists regarding human behavior, except

• A) workers tend to spend and consume too much in the present, thus not saving enough for retirement.
• B) people tend to stick with the default option when faced with various alternatives.
• C) people behave in ways that seem irrational at first glance, but are really rational.
• D) people often intentionally act in irrational ways.

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Definitions:

Materials Costs

The cost of raw materials used in the production of goods, a major component of the total manufacturing cost.

Processing Costs

Costs incurred in the course of converting raw materials into finished goods, including labor and overhead expenses.

Relevant

Pertains to information or costs that are pertinent to a particular decision, differing under the alternatives being considered.

Financial Advantage

The benefit derived from making a financial decision that results in gains exceeding costs.