Asked by
Paolo Rocha
on Dec 12, 2024
Verified
When economists say that people choose rationally, this means
A) they gather all relevant information before making their purchases
B) once a pattern of behavior has been established, people tend to become set in their ways
C) people respond in predictable ways to changes in costs and benefits
D) people rarely make errors when they are permitted to make transactions
E) once made, decisions are never reversed
Rational Choice
A theory in economics that assumes individuals always make prudent and logical decisions that provide them with the highest amount of personal utility.
Costs and Benefits
An analysis approach that compares the total costs and total benefits associated with a particular action or decision to determine its feasibility or worth.
Predictable Ways
Methods or patterns that can be anticipated or expected based on previous observations or known properties.
- Gain insight into the effect of incentives on personal and economic choice-making processes.
- Acknowledge that human choices are directed in an expected manner by weighing the advantages and disadvantages at a personal and communal level.
Verified Answer
FF
Learning Objectives
- Gain insight into the effect of incentives on personal and economic choice-making processes.
- Acknowledge that human choices are directed in an expected manner by weighing the advantages and disadvantages at a personal and communal level.