Asked by
Kaylin Lindsey
on Oct 08, 2024Verified
According to behavioral economists,the human brain frequently employs heuristics because:
A) people have consciously trained their brains to do so.
B) these shortcuts minimize errors in decision making.
C) they produce more optimal outcomes than do rational calculations of benefits and costs.
D) they save energy and time in decision making.
Heuristics
Simple, efficient rules, often learned or instinctive, that help in making decisions, forming judgments, or solving problems.
Behavioral Economists
Economists who study how psychological, social, cognitive, and emotional factors affect economic decisions of individuals and institutions.
Rational Calculations
The process of making decisions based on logical reasoning and quantitative analysis to achieve the most favorable outcome.
- Understand the variety of cognitive biases and how they affect economic conduct.
- Comprehend how behavioral economics elucidates phenomena that conventional economic theories do not explain.
Verified Answer
NM
Learning Objectives
- Understand the variety of cognitive biases and how they affect economic conduct.
- Comprehend how behavioral economics elucidates phenomena that conventional economic theories do not explain.