When observing people making choices that do not at first appear to be rational, an economist will ask,
a. "How might a psychologist explain this behavior?"
b. "Why do we economists keep believing that people behave rationally?"
c. "How might such behavior be serving someone's purposes?"
d. "What is wrong with these people?"
c. "How might such behavior be serving someone's purposes?"
Economics
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Which of the following is most likely to have an income elasticity of demand that exceeds 1?
A) tobacco B) alcoholic beverages C) airline travel D) food E) telephone
Economics
If the nominal interest rate is 8 percent and the inflation rate is 2 percent, the real interest rate is approximately
A) 4 percent. B) 6 percent. C) 0.25 percent. D) 10 percent.
Economics