Why Might the Economy as a Whole Conform to the Predictions

question 69

Multiple Choice

Why might the economy as a whole conform to the predictions of a model even if not all people are rational?

• A) The standard model doesn't assume rationality.
• B) People who are rational will profit from those who are not.
• C) People who are irrational will profit from those who are not.
• D) It won't; for the standard model to work, all people must be rational.

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Definitions:

Distribution System

the network used to deliver goods or services from producers to consumers, including warehouses, transportation, and retailers.

Seasonal Products

Goods and services that have a high demand or are only available during specific times of the year, often influenced by the season.

Specialized Goods

Products that are designed and produced to meet the specific needs or requirements of a target market or niche.

Location

The specific place or position where something exists or is situated.