"Rational, self-interested people would never end up worse off by any decision they make. Obviously, people often make mistakes or have regrets. Therefore, people do not act rationally or out of self-interest"
Do you agree with these statements? Why or why not?
No. People may make mistakes because they often do not have enough information to make the best decision or because they are wrong about the effect of their actions. When they make a decision, given their circumstances and the information they have, they make the best choice for themselves.
You might also like to view...
In the post-World War II period, considerable growth in total production took place in the United States
But at the same time, businesses were dumping their waste into the Great Lakes with minimal cost to themselves, significantly polluting the bodies of water as a result. This occurrence is an example where A) real GDP gives an overly positive view of economic welfare. B) real GDP gives an overly negative view of economic welfare. C) investment would have been a better measure of total production. D) the pollution counts as a final good.
An increase in the supply of oranges in a town drives down its price by 5 percent. Which of the following changes will be observed in the market?
a. The demand for oranges will decrease. b. The demand for oranges will increase. c. The quantity of oranges demanded will increase. d. The quantity of oranges demanded will decrease.
Water quality in the United States has ____ in the past 25 years.
A. improved B. worsened C. remained unchanged D. improved slightly before a recent deterioration
The economic system characterized by private ownership of resources and market is:
A. capitalism. B. communism. C. fascism. D. socialism.