All but One of the Following Behaviours Are Inconsistent with the Assumption

question 153

Multiple Choice

All but one of the following behaviours are inconsistent with the assumption of narrowly self-interested individuals.Which one?

• A) Leaving a tip at an out-of-town restaurant.
• B) Suing someone over a $50 dispute.
• C) Taking only one newspaper out of the machine.
• D) Returning a lost wallet full of cash to the owner.
• E) Getting the lowest price on a new car.

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Definitions:

Market Economy

A system where the prices of goods and services are determined by supply and demand, rather than by government intervention.

Employment Discrimination

Unfair treatment of employees based on race, gender, age, religion, nationality, disability, or sexual orientation rather than job performance or qualifications.

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way possible, typically characterized by the absence of involuntary unemployment.

Full Production

A state of economic production in which all available resources (labor, capital, etc.) are being used efficiently, leading to the maximum possible output.