When Economists Say That People Act as Rational Decision Makers

question 103

Multiple Choice

When economists say that people act as rational decision makers, that 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

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Definitions:

Listening

Process of selecting, attending to, creating meaning from, remembering, and responding to verbal and nonverbal messages.

Pseudoconflict

A perceived conflict that arises from misunderstandings or miscommunications rather than actual disagreements or differences.

Simple Conflict

A basic disagreement or clash between parties with differing opinions, interests, or goals, which is typically uncomplicated and resolvable through communication.

Ego Conflict

occurs when a disagreement or confrontation challenges an individual's sense of self-esteem or identity.