Question 1

• Explain the principles of behavioral economics and how they deviate from traditional economic assumptions. Provide real-world examples of behavioral phenomena influencing economic decisions.
• Discuss the policy implications of behavioral economics for areas such as public health, environmental conservation, or financial regulation.
• Explain the concept of market failure and provide examples. How can government intervention address market failures without creating new inefficiencies?
• Discuss the implications of imperfect competition on market outcomes. How do different market structures affect pricing and output decisions by firms?