ECO 201 Week 8 Discussion | Southern New Hampshire University

ECO 201 Week 8 Discussion | Southern New Hampshire University

8-2 Discussion: Frontiers of Microeconomics

 

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.

Based on what you have learned in your assigned reading, answer the following questions in your initial post:

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

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