Question

SPAR31160
control People often make choices that bear a mixed relationship to their own
preferenhess).
Popiness,
Read the passage given below and answer questions,
The field of behavioural economics blends ideas from
and economics, and it can provide valuable insight that individuals are not behaving in own best
interests
Behavioral economics provides a framework to understand when and how people make errors. Systematic errors or biases recur predictably in particular circumstances.
Lessons from behavioural economics can be used to create environments that nudge people toward wiser decisions and healthier lives.
Behavioural economics emerged against the backdrop of the traditional economic approach known as rational choice model. The rational person is assumed to correctly
weigh costs and benefits and calculate the best choices for himself. The rational person is expected to know his preferences (both present and future), and nev flip-flop
between two contradictory desires. He has perfect self-control and can restrain impulses that may prevent him from achieving his long-term goals.
Traditional economics uses these assumptions to predict real human behaviour. The standard policy advice that stems from this way of thinking is to people as many
choices as possible, and let them choose the one they like best (with minimum government intervention). Because they know their preferences better than government
officials do Individuals are in the best position to know what is best for them.
In contrast, behavioural economics shows that actual human beings do not act that way. People have limited cognitive abilities and a great deal of trouble exercising self-
They tend to choose the that has the greatest
iate
appeal at the cost of long-term
such as taking drugs or
​

Answer 1

Answer:

Murugu LLUNOMICS

Methods - Usefulnes - Fundamental Concej

Managerial Economics - Role and Responsibilities of a Managerial Economist - Goals of aj

MEANING & DEFINITION OF MANAGERIAL ECONOMICS

+ Branch of Economics.

# Managerial Economics is the study of Economic Theories, Principles and

Concepts which is used in Managerial Decision Making.'