Multiple Choice
Which of the following is NOT a result of specialization?
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0. Basic Principles of Economics
Positive and Normative Analysis
Multiple Choice
Which of the following is NOT an assumption of the classical model of decision making?
A
Individuals always act to maximize their utility.
B
Individuals have complete information about all alternatives.
C
Individuals are influenced by social norms and emotions.
D
Individuals are rational and consistent in their choices.
Verified step by step guidance1
Step 1: Understand the classical model of decision making, which assumes that individuals are rational agents who seek to maximize their utility when making choices.
Step 2: Recognize that the classical model assumes individuals have complete information about all available alternatives, allowing them to make fully informed decisions.
Step 3: Note that the model also assumes individuals are consistent in their preferences and choices, meaning their decisions follow a logical and stable pattern.
Step 4: Identify that the classical model does NOT typically incorporate the influence of social norms and emotions on decision making, as it focuses on rationality and utility maximization.
Step 5: Conclude that the statement 'Individuals are influenced by social norms and emotions' is NOT an assumption of the classical model of decision making.
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