Behavioral Economics

Multiple Choice

Behavioral economics:

A) invalidates most of the standard economic models because it is difficult to account for irrational behavior.
B) suggests that people are even more rational and calculating than suggested by standard economic models.
C) concludes that, at least for durable goods, demand curves and supply curves both slope upward.
D) provides insights that can, in many cases, easily be accounted for by standard economic models.