Behavioral Economics Recognizes That People Use System 1 to Make

question 89

Multiple Choice

Behavioral economics recognizes that people use System 1 to make decisions more often than they use System 2.Which of the following is an implication of that decision-making process?

• A) A majority of decisions are not made according to the neoclassical assumption of rational behavior.
• B) Most decisions involve careful calculation of costs and benefits.
• C) Even though most decisions are irrational,the neoclassical model still accurately predicts outcomes.
• D) System 1 is best at making optimal decisions.

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Definitions:

Avoidance

A behavior or strategy aimed at keeping away from certain situations or stimuli that are perceived as harmful or unpleasant.

Therapeutic Alliance

The collaborative bond and trust between a therapist and client, considered to be a crucial factor in the effectiveness of therapy.

Counseling

A professional process that involves assisting individuals, couples, or groups in solving personal or psychological problems through various therapeutic techniques.

Advice-Giving

The act of offering recommendations or guidance to someone, often within a professional or therapeutic context.