Question

In behavioral economics, we assert that: people sometimes do things because they think it is the fair thing to do, ______

but only if the net gains exceed the net losses.

but actions based on fairness must also be backed by real financial gains or other material or tangible benefit.

sometimes expecting nothing in return, but most often expecting real gains also.

even if there is no financial or other material benefit.

Answer 1

Ans. In Behavioral economics, we assert that : people sometimes do things because they think it is fair thing to do , even if there are no financial or other material gains .

All other first three choices are incorrect because they talk in terms of expected gains or other financial or real gains but it's incorrect as in behaviour economic people act as a irrational agent, so they work differently from what is suggested by the theory .