While classical economics is based on the notion that people act with rational self-interest, many key money decisions—like splurging on an expensive watch—can seem far from rational. The field of behavioral economics sheds light on the many subtle and not-so-subtle factors that contribute to our financial and purchasing choices. And in Behavioral Economics For Dummies, readers will learn how social and psychological factors, such as instinctual behavior patterns, social pressure, and mental framing, can dramatically affect our day-to-day decision-making and financial choices.
Based on psychology and rooted in real-world examples, Behavioral Economics For Dummies offers the sort of insights designed to help investors avoid impulsive mistakes, companies understand the mechanisms behind individual choices, and governments and nonprofits make public decisions.
An essential component to improving your financial decision-making (and even to understanding current events), Behavioral Economics For Dummies is important for just about anyone who has a bank account and is interested in why—and when—they spend money.
If you want to get to grips with the basics of economics and understand a subject that affects British citizens on a daily basis, then look no further than Economics For Dummies. This easy to understand guide takes you through the world of economics from understanding micro- and macroeconomics to demystifying complex topics such as capitalism and recession.
This updated edition walks you through the history, principles and theories of economics as well as breaking down all the complicated terminology, leaving you clued up on economics in no time.
Getting to grips – explore the science of economics and how people deal with scarcity
Keeping an eye on it – learn all about macroeconomics and how economists keep track of everything
Watch patterns emerge – understand why monitoring consumer behaviour is vital and all you need to know about microeconomics
Your recession guide – expert advice on recessions and a detailed look at why they occur
Open the book and find:
Why you should care about economics and how it affects you
Tools to help you understand a recession
A guide to seductive economic fallacies
All you need to know on monetary and fiscal policies
How supply and demand can be made easy
Why it's vital to track consumer choices
An in-depth look at a profit-maximising firm and the core of capitalism
Guidance on property rights and wrongs
Look through economic history and spot the trends
Understand micro- and macroeconomics
Get to grips with consumer behaviour and its influence on the economy
Spot the signs of a recession and see how economic decisions affect you