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Sarah Moroyoque
on Dec 19, 2024

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Neoclassical economics tends to make inaccurate predictions of human behavior in situations involving

A) price changes.
B) financial incentives.
C) firms' profits.
D) uncertainty and fairness.

Neoclassical Economics

A framework within economics that focuses on the determination of goods, outputs, and income distributions in markets through supply and demand.

Uncertainty

The state of having limited knowledge where it is impossible to exactly describe the existing state, a future outcome, or more than one possible outcome.

Fairness

The impartial and just treatment without favoritism or discrimination; in economics, often related to equitable distribution of resources and opportunities.

  • Understand the fundamental differences between neoclassical and behavioral economics.
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SL
Steven LamarreDec 23, 2024
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