behavioural Economics behavioural economists focus on situations where people be
ID: 1201036 • Letter: B
Question
behavioural Economics
behavioural economists focus on situations where people behave differently from how the traditional economic framework suggests they should. Which are the following are examples of this.
Check ALL that Applies
A) some people would choose to spend 90 minutes completing a task tomorrow rather than 80 minutes completing it today, yet would choose to spend 80 minutes completing the task 50 days from now rather than spend 90 minutes cmpleting it 51 days from now.
B) If pens are priced at $1.99 and $4.00, people are more likely to purchase the cheaper pen, wheras if pens are priced at $2.00 and $3.99, people are more likely to purchase the dearer pen.
C) some people would be willing to make a large sacrifice in order to help a loved one.
D) there are people who pursue d degree in theatre rather than engineering, even though engineeing careers re usually much higher paying.
Explanation / Answer
True, it conforms behavioral economics
True. Number after decimal has less significance when it comes to buying decisions. So 4-1 is 3, so they go for cheaper one. WHereas 3-2 is just 1 so they go for dearer pen. But when we see mathematically both the differences are nearly $2.
True.
True. FOr some people it is more about their interests and passion.
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