Aula de inglês: Ch4:03 Economics: Behavioral Economics
Channel: Rui English
Date: 2023-05-14

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🔘RuiEnglish Lec: Ch4:03 Economics: Behavioral Economics


1. Why does the author mention charity in paragraph 2?
(A) To explain the role of charity in economic decisions
(B) To explain that rational individuals tend to act in ways that bring little material benefit
(C) To explain that material benefit is the main determinant of rationality 
(D) To explain how choices can be rational without having material benefit

2. The author discusses aspirin in paragraph 3 in order to 
(A) reveal the rationality of the pharmaceutical companies
(B) provide an example of how businesses can present a product
(C) show that not all rational decisions are the best economic choice
(D) give an example of how consumers can lead the framing process

3. The author discusses increased wealth in paragraph 4 in order to
(A) exemplify some people's refusal to acknowledge economics
(B) point out that rational decisions are not always the best ones
(C) argue that rationality is often misinterpreted
(D) show that individuals may not always act rationally


Fill in the blanks to complete the summary.
Behavioral economics seeks to explain how and why consumers make certain decisions. It was originally closely tied to the field of _____________ and attempts to analyze consumer behavior. Behavioral economics acknowledges that consumers are rational in their decisions, although those decisions may not be economically _____________ . For example, many people give money to _____________  although they do not benefit materially from it. Also, people make choices based on how certain situations or products are framed. For instance, companies changed the framing of aspirin once it was found to ease a variety of _____________ . In addition, consumers sometimes make irrational decisions based on misperceptions, such as the belief that making more money increases happiness. The reality is that once a certain level of wealth is reached, the amount of happiness felt from earning more money _____________ .