What Are the Two Categories of Cognitive Biases Identified by Behavioral

question 23

Multiple Choice

What are the two categories of cognitive biases identified by behavioral economists?

• A) Unevolved capacity for solving modern problems and faulty heuristics.
• B) Bad information and lack of impulse control.
• C) Lack of intellect and mental disorders.
• D) Inability to reason and inability to delay gratification.

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Definitions:

Product of Labor

The goods or services generated as a result of work or employment, often measured to evaluate productivity.

Profit Maximization

The strategy a business uses to ascertain the pricing and amount of production that maximizes profitability.

Workers

Individuals engaged in any form of economic activity to earn a wage or salary.

Wage

Compensation received by employees for their labor or services, often expressed in terms of hourly, daily, or annual earnings.