Your roommate,Serafina,a psychology major,said,"The problem with economics is that it assumes that consumers and firms always make the correct decision.But we know that everyone's human,and we all make mistakes." Do you agree with her comment?
A) Yes,I agree with her.One cannot make predictions about economic behavior because in reality people make incorrect choices in many situations.
B) I disagree with her.Economics does not study correct or incorrect behaviors but rather it assumes that economic agents behave rationally,meaning they make the best decisions given their knowledge of the costs and benefits.
C) Yes,I agree with her.Economic theory should allow for irrational behavior so that we can have more reliable predictions.
D) I disagree with her.If we cannot assume that decisions are correct,then we will not be able to examine the moral implications of these decisions.
Correct Answer:
Verified
Q2: The basic economic problem of scarcity
A)has always
Q3: Consider the following statements: a.Consumers rent more
Q4: One reason some manufacturing companies began moving
Q5: Scarcity refers to the situation in which
A)unlimited
Q6: Holding all other personal characteristics-such as age,gender,and
Q7: Economists assume that rational people
A)never use all
Q8: Economics promotes which of the following as
Q9: Economics is the study of the _
Q10: An office supply store sells a ream
Q11: Which of the following best describes an
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