Economists Focus on Self-Interest in Explaining Choices Because

question 61

Multiple Choice

Economists focus on self-interest in explaining choices because:

• A) individuals often are motivated by selflessness.
• B) economists know people are selfish even if psychologists don't.
• C) economists do not believe that there is more to making choices than maximizing utility.
• D) it is a useful way to approach problems.

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Definitions:

Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

Inventory Investment

The change in the total value of unsold goods and materials held by businesses over a specific period.

GDP

Gross Domestic Product; the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Government Bonds

Securities issued by a government to raise funds from the public to finance its activities and service its debt.