Behavioral Economics Is an Approach to the Study of Consumer

question 311

Multiple Choice

Behavioral economics is an approach to the study of consumer behavior

• A) that emphasizes psychological limitations and complications that potentially interfere with rational decision making.
• B) that emphasizes the capabilities of individuals to succeed in attaining all their unlimited wants utilizing limited resources.
• C) that, in contrast to standard approaches in economics, utilizes the ceteris paribus assumption.
• D) that, in contrast to standard approaches in economics, relies on real-world data to evaluate the usefulness of economic models.

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Definitions:

Model

A simplified representation of a system or phenomenon, often used in scientific research or to demonstrate complex processes in a comprehensible manner.

Al-Qaeda

An international Islamist extremist terror organization responsible for numerous attacks around the world, including the September 11 attacks in the United States.

ISIS

An extremist militant group that proclaimed itself a worldwide caliphate, known for committing severe acts of terrorism.

Pluralism

Is the retention of racial and ethnic culture combined with equal access to basic social resources.