In Building Models,economists Often Assume That Opportunity Costs Don't Matter

question 28

True/False

In building models,economists often assume that opportunity costs don't matter.

Recognize the contributions of key figures in the field of behavioral economics.

Contrast the prediction capabilities of neoclassical and behavioral economics in real-world economic crises.

Understand the distinction and application of System 1 and System 2 in decision-making processes.

Recognize various cognitive biases and their impact on economic behavior.

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Definitions:

Rationalize

The process of providing logical, reasonable explanations or justifications for actions, decisions, or beliefs, often to make them seem more acceptable or sensible.

Pay-offs

The benefits or rewards received as a result of an action or decision.

Billboard Advertising

A form of outdoor advertising where large posters are displayed on billboards to promote products, services, or events.

Ethics Mindfulness

The practice of being fully aware of the ethical implications of one's actions and decisions in the professional environment.