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:

Divergent Boundary

A tectonic plate boundary where two plates are moving away from each other, leading to the creation of new crust.

Transform Boundary

A type of plate boundary where two tectonic plates slide past each other horizontally, often associated with earthquakes.

Mantle

The layer of the Earth between the crust and the outer core, composed of silicate rocks that are rich in magnesium and iron.

Melting

The process of changing from a solid to a liquid state due to an increase in temperature and/or a decrease in pressure.