Problem
Economics is the study of how individuals and businesses make decisions to best satisfy wants, needs, and desires with limited resources (aka we don't have an endless amount of resources and so we need to prioritize our purchase decisions). As you read the text, you'll see different ways of how the monetary and fiscal policies affect our economy and how economists can use indicators to measure the health of an economy - however, is there more to economics than logic?
Watch the video by Dan Ariely. Using what we learned in our text and what Dan Ariely shares about behavioral economics, write a short summary including but not limited to an analysis of:
i. Differences/similarities of behavioral vs. rational economics;
ii. How does the video support and/or affect the concepts of supply and demand;
iii. How would understanding behavioral economics help in the study of rational economics?
iv. Do you think the type of economic system plays a part in decision making? Give an example of how decisions might be made in an economic system that differs from the US.