Multiple Choice 1 point Unlike traditional economics behavioral economics believes that... People will always update their viewpoints based on new information People behave in a rational way when making economic decisions There is no way to predict how people will make economic decisions people do not always behave in a rational way when making economic decisions

The correct answer is: people do not always behave in a rational way when making economic decisions.<br /><br />Behavioral economics is a field of study that examines how psychological factors and cognitive biases influence economic decision-making. Unlike traditional economics, which assumes that people always make rational decisions based on complete information, behavioral economics recognizes that people are often irrational and may make decisions based on emotions, heuristics, and limited information. This field of study has shown that people do not always act in a way that maximizes their economic well-being, and that their behavior can be influenced by factors such as framing, loss aversion, and social preferences.