Suppose Maya announces that she would like to make healthier choices, but she does not follow through on actually making these choices. Traditional economic theory would conclude that: Maya's revealed behavior shows that the benefits of altered behavior must not outweigh the costs. Maya made a bad choice. Maya has incorrect preferences.
A)I only
B)II and III only
C)II only
D)I, II, and III

Question

Quizplus · Accepted Answer

Traditional economic theory often assumes that individuals have stable preferences and that their choices reveal those preferences. If Maya announces she wants to make healthier choices but does not follow through, traditional economic theory would interpret this as her revealed preferences showing that the benefits of making healthier choices do not outweigh the costs for her. It does not necessarily imply that she made a bad choice or has incorrect preferences, as those judgments are more normative and subjective.

Suppose Maya Announces That She Would Like to Make Healthier