The fact that most people make some decisions based on intuition rather than calculation is:
A. inconsistent with the cost-benefit model, but still rational.
B. consistent with the cost-benefit model because most people intuitively weigh costs and benefits.
C. consistent with the cost-benefit model because calculating costs and benefits is irrational.
D. irrational, because intuition is usually wrong.
Answer: B
You might also like to view...
If national income is equal to zero, then consumption must also be equal to zero
Indicate whether the statement is true or false
The maximum change in the money supply due to an initial change in the excess reserves banks hold is called the:
A. fractional reserve banking system. B. money multiplier. C. required reserve ratio. D. open market operations.
The lack of investment in developing countries is at least in part attributable to:
A. high levels of foreign aid. B. low levels of domestic savings. C. inappropriate education. D. overpopulation.
If the legal minimum wage is set above the equilibrium wage rate
A. employment will tend to be lower than it otherwise would have been. B. employment will tend to be higher than it otherwise would have been. C. the level of employment will not be affected. D. there is no way to determine how the level of employment would be affected.