Economics · Behavioral Economics
Behavioral economics demonstrates that individuals often deviate from rational choice theory due to cognitive biases such as overconfidence, anchoring, and loss aversion. In this context, which of the following statements are correct? 1. Traditional neoclassical economics assumes perfect rationality of economic agents. 2. Behavioral models integrate psychological insights into economic decision-making. 3. Nudging is a policy tool used to influence choices without restricting individual freedom. 4. Behavioral biases consistently improve individual decision-making efficiency. Which of the statements given above are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 11, 2 and 3✓
- 21 and 2 only
- 32, 3 and 4
- 41, 3 and 4
Correct answer
1, 2 and 3
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