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The Three Major Assumptions Underlying the Economist's Theory of Choice

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Essay

The three major assumptions underlying the economist's theory of choice are (1) decisions can be made costlessly, (2) our preferences are given and not shaped by society, and (3) that individuals maximize utility. Explain why each of those assumptions may not reflect reality. Why may the assumption of "bounded rationality" be more realistic?


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The diagnosis, treatment, and prevention of disease, illness, injury, and other physical and mental impairments in human beings through the application of professional health services.

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A form of love that involves feeling deep empathy, care, and concern for the wellbeing of another individual, often motivating altruistic behavior.

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