The Assumption That Consumer Choices Are Utility-Maximizing Is

question 57

Multiple Choice

The assumption that consumer choices are utility-maximizing is:

• A) a main axiom of behavioral economics.
• B) an assumption that behavioral economics calls into question.
• C) a logical conclusion of observed behavior.
• D) a basic assumption of basic economic theory that carries over to behavioral economics.

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Definitions:

Korsakoff Syndrome

A chronic memory disorder caused by severe deficiency of thiamine (vitamin B1), most often associated with alcoholism.

Hypothalamus

A region of the brain that plays a crucial role in many essential functions, including hormone release, regulation of body temperature, and maintenance of daily physiological cycles.

Pituitary Gland

Gland located in the brain that secretes human growth hormone and influences all other hormone-secreting glands (also known as the master gland).

Pineal Gland

Endocrine gland located near the base of the cerebrum; secretes melatonin.