📚 Learning Guide
Behavioral Economics and Decision-Making
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Individuals often make choices that seem irrational, such as choosing a less beneficial option when a better one is available. What underlying cause might explain this behavior?

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Learning Path
Learning Path

Question & Answer
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Choose the Best Answer

A

Cognitive biases affecting judgment

B

Lack of available information

C

Strict adherence to traditional economic theory

D

External economic pressures

Understanding the Answer

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Answer

People often make choices that seem irrational because of how our brains are wired to respond to emotions and social influences. Sometimes, we prioritize immediate feelings or social approval over logical reasoning. For example, someone might choose a sugary snack instead of a healthy option because it feels more rewarding in the moment, even though the healthy choice is better for their long-term health. Additionally, factors like peer pressure or fear of missing out can lead us to make decisions that don’t seem beneficial. This shows how our emotions and social environment can strongly influence our choices, leading us away from what might be the most rational option.

Detailed Explanation

Cognitive biases are mental shortcuts that can lead us to make poor choices. Other options are incorrect because Some people think that not knowing enough leads to bad choices; This idea suggests that people always act logically, but that's not true.

Key Concepts

Behavioral Economics
Decision-Making Processes
Cognitive Biases
Topic

Behavioral Economics and Decision-Making

Difficulty

medium level question

Cognitive Level

understand

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