According to the rational choice model developed in this chapter, which statement below is false?
A)People would be less happy if they exchanged money rather than things at Christmas.
B)Individual preference patterns do not change because prices change.
C)Consumers behave as if they did cost-benefit analysis on every purchase.
D)Cash grants are always better than in-kind gifts.

Question

Quizplus · Accepted Answer

The rational choice model does not make assumptions about people's happiness or emotional states, but rather focuses on how individuals make decisions based on their perceived costs and benefits. Therefore, statement A is false as it pertains to emotional satisfaction rather than rational decision-making.

According to the Rational Choice Model Developed in This Chapter