According to the adaptive rationality standard, individuals:
A. are irrational if they choose to have preferences that are not self-interested.
B. might rationally choose to have preferences that are not self-interested.
C. always behave according to their own narrow self-interest.
D. are unable to choose what kind of preferences to have.
Answer: B
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Negative economic growth in the long-run can be illustrated in Figure 17.1 by
A. Movement from point D to point C. B. An outward shift of the production possibilities curve. C. An inward shift of the production possibilities curve. D. Movement from point B to point D.
Why are too few resources devoted to the creation of knowledge?
a) Profit-seeking firms tend to free-ride on the knowledge that others have developed. b) Profit-seeking firms undervalue knowledge in their pursuit of revenues. c) Profit-seeking firms tend to rely on existing employee knowledge. d) Profit-seeking firms abuse their patents.
The seller side of the market is known as the:
A. supply side. B. income side. C. demand side. D. seller side.
Third-degree price discrimination occurs when a monopoly
a. separates its customers into distinct markets, charging a different price to each group. b. charges different prices for the same good sold to the same customer. c. requires the consumer to pay a separate fee simply for the right to purchase the good. d. charges each customer the maximum that he is willing to pay for each item purchased.