Discover the Intersection of Psychology and Economics with this Behavioral Econo...
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Questions and Answers

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?

  • Lack of cognitive failures
  • Rational decision-making
  • Perfect knowledge (correct)
  • Complete information

    • 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'?

    <p>Incomplete knowledge</p> Signup and view all the answers

    What personal rule is mentioned in the text for decision-making?

    <p>Always pay by cash for purchases of less than $100</p> Signup and view all the answers

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