Behavioral Economics

question 127

Multiple Choice

Behavioral economics

• A) is the least controversial field of economics.
• B) involves people separating small losses from large losses.
• C) uses the results of psychology experiments to apply to models of individual decision-making.
• D) uses the result of sociology observations to apply to models of individual decision-making.
• E) is the most controversial field of economics.

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Definitions:

Reinforcement Theory

A theory in psychology that posits behavior is driven by its consequences, with reinforcement used to increase desirable behaviors.

Type Of Reward

Refers to the various forms of compensation or recognition given to individuals or groups for reaching specific goals or desired behaviors.

Expectancy Theory

A motivation theory which suggests that an individual's behavior is determined by their expected outcomes and the attractiveness of those outcomes.

Barry Staw

A renowned organizational psychologist known for his work on concepts such as organizational commitment and the escalation of commitment.