What new idea has behavioral economics brought to economics in the area of government policy making?
a. Standard economic analysis of policy tools -- such as taxes, subsidies, and regulations -- assumes that people will respond rationally to such policies
b. Behavioral economics points out that the analysis of government policies should understand that people may respond in predictably irrational ways
c. Behavioral economics has introduced nudges, which are a new category of policy tools. Unlike standard policy tools, nudges are designed to take advantage of the predictable irrationalities of people.
d. All of the above.
- OiyLv 61 month ago
I would go for D.