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Economics A Level

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Question:

What are the Key Principles of Traditional Economics? -How does Behavioural Economics challenge that idea?

Author: go kys



Answer:

-Economic Agents have a Maximising Behaviour [Total Self Control] -Economic Agents are Rational - act for the Best Interest for Themselves -Behavioural Economics says this isn’t Realistic due to the Social, Psychological and Emotional Factors that may sway Economic Agents. However, they do not Ignore the Traditional Viewpoint, but make it more Suited for the Real World


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go kys
go kys