Question

Because of the doubts expressed by proponents of behavioral​ economics, most economists no longer apply the assumption that people behave as if they act rationally with an aim to maximize utility.True / False.

Answer 1

The correct answer is True

Economy is studying the behavior of each consumer. And this human behavior, it is important to emphasize, like almost everything in life, is made up of choices (options). These choices, due to the constant nature in which they appear in our lives, point, in the end, to the existence of these conflicts. So why then do conflicts occur? Precisely, because it is not always possible to meet the needs of each one, given the relentless existence of scarcity of resources. Here, there is a confrontation between the finite (resources) x the infinite (consumer wants and needs). In short: not enough of all goods are produced to meet all needs simultaneously (neoclassical theory).