Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A person chooses to recycle because they observe their neighbors doing it.
B
A consumer decides to buy a product based on its price alone.
C
An investor buys stocks based on market trends without considering peer behavior.
D
A shopper selects a brand because it has received the highest rewards in loyalty programs.
Understanding the Answer
Let's break down why this is correct
Answer
Social norms are the unwritten rules about how to behave in a group, and they can strongly influence our decisions. In behavioral economics, this means that people often make choices based on what they think others expect them to do, rather than just on personal preferences or logical reasoning. For example, if a group of friends decides to eat healthy food, an individual might choose a salad instead of a burger, not only because they want to be healthy but also to fit in with their friends. This shows how social norms can guide our decisions, even when we might prefer something else. Understanding this influence helps us see why people sometimes make choices that may not be the best for them individually.
Detailed Explanation
People often look at what others do to decide how to act. Other options are incorrect because This answer suggests that price alone drives decisions; This option focuses on market trends without considering others.
Key Concepts
Social norms
Topic
Behavioral Economics and Decision-Making
Difficulty
easy level question
Cognitive Level
understand
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