Economists Make Predictions About Individual Behavior Based on the Assumption

question 173

True/False

Economists make predictions about individual behavior based on the assumption that people exploit opportunities to make themselves better off.The fact that different individuals make different choices when confronted with the same situation implies that this assumption is often violated.

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Definitions:

Affiliation Motive

An inherent desire to belong to a group or form close personal relationships and social connections.

Innate Drive

An internal motivated force that drives individuals to fulfill basic physiological and psychological needs.

Testosterone

A steroid hormone that plays a key role in the development of male reproductive tissues and the promotion of secondary sexual characteristics.

Sex Drive

The fundamental human need or desire for sexual activity; another term often synonymous with libido.