Final answer:
Behavioral economics is a branch of economics that integrates psychology to understand decision-making.
Step-by-step explanation:
Behavioral economics is a branch of economics that seeks to enrich the understanding of decision-making by integrating the insights of psychology and by investigating how given dollar amounts can mean different things to individuals depending on the situation.
One example of this is people's state of mind when making economic decisions. Behavioral economists argue that emotions such as revenge, optimism, or loss can influence how individuals think about money and make economic choices.
Understanding these psychological, social, cognitive, and emotional factors can provide valuable insights into economic decision making.