Question

Behavioral economists believe that people:

A. assess current and future options equally well.
B. make errors in decision making because of problems such as bad C. information, but such errors are random and generally not repeated by the same individual.
D. do not care about fairness, especially if it impairs their ability to get what they want.
E. often succumb to temptation.

Answer 1

Answer:

option D

Explanation:

In an ideal situation, people would always make optimal decisions that provide them with the greatest benefit and satisfaction.

This theory assumes that people, given their preferences and constraints, are capable of making rational decisions by effectively weighing the costs and benefits of each option available to them. The final decision made will be the best choice for the individual. The rational person has self-control and is unmoved by emotions and external factors and, hence, knows what is best for himself. Alas behavioral economics explains that humans are not rational and are incapable of making good decisions.