People Are Rational quiz #1 Flashcards
People Are Rational quiz #1
You can tap to flip the card.
Control buttons has been changed to "navigation" mode.
1/19Skip to main content
What is a rational economic decision? A rational economic decision is one where individuals or firms try to do their best with the resources they have, aiming to optimize outcomes and avoid making themselves worse off. Which of the following is an assumption made by rational choice theory? Rational choice theory assumes that people try to do their best with what they have and do not intentionally make themselves worse off. Which assumption below best reflects a basic understanding economists have about the world? Economists assume that people are rational, meaning they attempt to optimize their outcomes with available resources. Which of the following scenarios depicts a seller who is following the rational rule for sellers? A seller who tries to maximize output and minimize waste with the resources available is following the rational rule for sellers. Which of these scenarios depicts a rational buyer? A rational buyer makes purchasing decisions that aim to maximize their benefit without intentionally making themselves worse off. Why should you be aware of whether you are a saver or a spender? Being aware helps you make rational decisions about resource allocation, aiming to optimize your financial outcomes. Cost-benefit analysis assumes rational agents do which of the following? Rational agents weigh the costs and benefits to make decisions that do not intentionally make themselves worse off. Workers who work only because they need to be paid are an example of which assumption of rational behavior? They exemplify the assumption that individuals act to optimize their outcomes with available resources. Which of the following statements about the idea that people are rational is correct? People are rational in that they try to do their best with what they have and do not intentionally act against their own interests. Economists assume that people are rational in the sense that They try to optimize their outcomes and avoid intentionally making themselves worse off. Economists assume that individuals Attempt to do their best with the resources they have and make decisions that optimize their well-being. Which of the following is most accurate about economists' view of purposeful behavior? Purposeful behavior means individuals and firms act rationally to optimize outcomes and minimize waste. What is a key assumption of rational consumer choice theory? Consumers try to do their best with available resources and do not intentionally make themselves worse off. What is the rational rule for buyers? Buyers should make purchases that maximize their benefit without intentionally making themselves worse off. To apply the classical viewpoint, you must assume that people are rational and Act to optimize their outcomes with the resources they have. A rational decision maker takes an action if and only if The action improves their situation or at least does not intentionally make them worse off. Economic reasoning is based on the premise that People are rational and try to do their best with available resources. What do economists mean when they say behavior is rational? It means individuals and firms try to optimize outcomes and avoid intentionally self-destructive actions. What is a rational decision maker? A rational decision maker is someone who tries to do their best with available resources and does not intentionally make themselves worse off.
01:32
