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November 7, 2021

Frontiers of Microeconomics

Economics, Undergraduate

Economic behavior is more complex than assumed by conventional economic theory. Political economy explains the functioning of government. Behavioral economics ties psychology into human behavior.

Economists assume that individuals make rational decisions. However real people are more complex.

answer the following questions in your initial post:

What are the human behaviors economists should observe when creating economic models? For example, people tend to find solutions that are good enough, but not the best solutions.

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