Kahneman's work challenges what assumption in modern economic theory?
Human rationality
Market efficiency
Perfect information
Supply-demand balance
Answer
Kahneman's work challenges the assumption of human rationality in modern economic theory. This assumption states that people make decisions based on logical and rational thought. However, Kahneman's research has shown that people often make decisions based on intuition and emotion, rather than logic. This has led to a new field of study called behavioral economics, which examines how human behavior affects economic decisions.
Cracking the Mind: The Daniel Kahneman Quiz
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