Nowadays the economic system accepts capitalism’s principles. According to that four principles, capitalism claim that humans are rational and their choices depend on what is the best and the most useful for themselves. The market system causes beneficial things to come into prominence. Also according to Adam Smith’s claim, an invisible hand in the market system will keep financial balances at the ultimate level. As the last principle, mutual trade makes everyone better off (David Ricardo’s comparative advantage theory). However, in the real world, do all human beings rational? What affects their economic choices? Is mutual trade makes everyone better off and expand welfare? Also, do the market system keep financial balances at the ultimate level? (Main topic is ”Behavioral Economics”)
#Behavioral #Economics
