The four elements of the economic way of thinking includes all of the following except:
A) economic analysis uses the key assumption that people act irrationally and that they are not motivated by self- interest.
B) economists use assumptions to make things simpler and focus attention on what really matters.
C) economic analysis often involves variables and how they affect one another.
D) economists often consider how a small change in one variable affects another variable.

Question

Quizplus · Accepted Answer

The economic way of thinking assumes that people act rationally and are motivated by self-interest, so option A is incorrect. The other three options are all elements of the economic way of thinking.

The Four Elements of the Economic Way of Thinking Includes