Which of the following is a TRUE statement about the economic assumption of rationality?
A) Individuals who are rational necessarily ignore the interests of others.
B) Individuals generally act as though they are rational.
C) Individual behavior may be irrational but group behavior is always rational.
D) People make decisions as if they are most selfish in the world.
Answer: B
You might also like to view...
What is price discrimination?
What will be an ideal response?
A model
A. is a complete representation of some phenomenon. C. is always expressed mathematically. D. cannot be qualitative in nature.
Suppose the market consists of 3 individuals: Citizen A, Citizen B and Citizen C.
If the good shown on the graphs is a private good, then at a price of $4, market demand is ________ units.
A. 5 B. 30 C. 60 D. 10
If the idea of herd instinct is true, it suggests that the:
A. efficient-market hypothesis does, in fact, hold. B. inefficient-market hypothesis doesn't always hold. C. efficient-market hypothesis doesn't always hold. D. inefficient-market hypothesis does, in fact, hold.