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Questions and Answers
Which field increases the explanatory power of economics by providing it with more realistic psychological foundations?
Which field increases the explanatory power of economics by providing it with more realistic psychological foundations?
- Behavioral economics (correct)
- Social psychology
- Developmental psychology
- Cognitive psychology
What does 'enlightened self-interest' imply according to the text?
What does 'enlightened self-interest' imply according to the text?
- Lack of cognitive failures
- Rational decision-making
- Perfect knowledge (correct)
- Complete information
What does the term 'heuristic' mean in the context of decision-making?
What does the term 'heuristic' mean in the context of decision-making?
- Having unlimited time for decision-making
- Using simple rules-of-thumb (correct)
- Processing information quickly
- Making decisions with complete information
What may be a reason for failing to judge what is in our 'self-interest'?
What may be a reason for failing to judge what is in our 'self-interest'?
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What personal rule is mentioned in the text for decision-making?
What personal rule is mentioned in the text for decision-making?
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