Jim enjoys the feeling of wind in his hair enough to ride his motorcycle without a helmet, even though he fully realizes the potential for injury it creates by not wearing one in the unlikely event he is in an accident. To an economist, Jim is
a. making an irrational choice.
b. making a rational choice.
c. not fully considering the personal costs and benefits of his decision.
d. not responding to the incentives he faces.
B
Economics
You might also like to view...
A share of stock is a
A) certificate of ownership and claim to the profits made by a firm. B) collection of funds that travels the world looking for the highest return. C) form of investment in physical capital. D) set of demanders and suppliers for the savings of households. E) promise to pay specified sums of money on specified dates.
Economics
Panel data
A) is also called longitudinal data. B) is the same as time series data. C) studies a group of people at a point in time. D) typically uses control and treatment groups.
Economics