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Question
In 1990, Richard Thaler, a behavioral economist, said the following with respect to the standard economic model: The problem seems to be that while economists have gotten increasingly sophisticated and clever, consumers have remained decidedly human. Which of the following statements best describes what Thaler implies in this sentence?
a. The standard economic model should be dumbed down so that more citizens can understand it.
b. The standard economic model fails to account for the fact that human beings generally do not act like Homo economicus.
c. Economists should educate citizens to become more sophisticated and clever so that their actions better fit the standard economic model.
d. The behavioral economic model needs to be abandoned.
e. Human nature is neither clever nor sophisticated.
Answer
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