Economists prefer measuring revealed preferences because it provides a clearer indication of actual behavior instead of just stated intentions. Revealed preferences refer to the choices individuals make based on their available options, which is a more reliable indicator of their preferences compared to just asking them what their preferences are.

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Economists Prefer

Question 74

Multiple Choice

Economists prefer:

A) measuring declared preferences for forecasting because participants in a survey always declare the truth.
B) measuring revealed preferences because it gives more accurate results.
C) predicting individual behavior as it is easy to collect data from individuals.
D) predicting individual behavior as it is easy to draw inferences from such data.
E) measuring revealed preferences because cost-benefit analysis can be conducted with such data

Correct Answer: