Which of the following statements about the concept of "rationality" is false?
A) Rationality means that people make choices to make themselves better off subject to resource constraints.
B) Rationality means that organizations make choices to meet their objectives (maximize profits, minimize cost, get elected) .
C) People and organizations are always perfectly rational in their decisions.
D) Purchasing life insurance to minimize the risk of financial problems for your family is an example of a rational decision.
E) Rationality is a concept that organizes and guides economic analysis, but may sometimes miss the human meaning of transactions in healthcare markets.
Correct Answer:
Verified
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