Which of the Following Sets of Personal Characteristics Best Reflects

question 26

Multiple Choice

Which of the following sets of personal characteristics best reflects what behavioral economists assume about how people make decisions?

• A)People are irrational, are prone to systematic errors, have stable preferences, and care about fairness.
• B)People are rational, adjust for errors, have stable preferences, and easily resist temptation.
• C)People care deeply about fairness, eagerly and accurately calculate ways to help others, assess future and present options equally well, and resist temptations in their selflessness.
• D)People have preferences that depend on context, avoid and are bad at computation, often give in to temptation, and are often selfless in their behavior.