Unit 1.2 · Economic Methodology and the Evolution of Economic Thought
Behavioural Economics and Interdisciplinary Dialogue (21st Century)
AO2
Syllabus Requirement
Highlights insights from psychology about bounded rationality, heuristics and biases, and their policy implications.
Assessment Objectives
AO2Application and Analysis
Summary
This topic discusses the role of behavioral economics and the importance of interdisciplinary dialogue in understanding economic phenomena in the 21st century. It highlights the distinction between positive and normative economics, emphasizing that positive economics focuses on objective, testable statements about how the economy functions.