6.3 Flashcards
(5 cards)
1
Q
What does traditional economics assume?
A
Traditional economics assumes rational decision-making with complete self-control.
2
Q
What does behavioral economics integrate into decision-making?
A
Behavioral economics integrates psychology into decision-making.
3
Q
How do people’s states of mind influence choices?
A
People’s states of mind influence choices.
4
Q
Can the same dollar amount have different values?
A
Yes, the same dollar amount can have different values in different situations.
5
Q
How can decisions appear from an outside perspective?
A
Decisions sometimes appear irrational from an outside perspective.
