If Individuals Behave Irrationally in Some Circumstances, Why Do Economists

question 45

Multiple Choice

If individuals behave irrationally in some circumstances, why do economists typically assume that they behave rationally?​

• A)​The assumption of rationality allows economists to make powerful statements that apply the majority of the time.
• B)​The assumption of rationality was used before psychologists discovered ways in which individuals behave irrationally.
• C)​The assumption of rationality is used because economists do not understand principles of psychology.
• D)​The assumption of rationality has yet to be refuted with scientific evidence.

Understand the basic concepts of classical conditioning, including unconditioned and conditioned responses and stimuli.

Comprehend the principles of operant conditioning, including different reinforcement schedules and the concepts of reinforcement and punishment.

Grasp the significance of observational learning and identify the factors necessary for it to occur.

Differentiate between various types of reinforcement (positive, negative) and punishment (application, removal).

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Definitions:

Entrepreneurial Creativity

The unique combination of innovation, risk-taking, and problem-solving applied in the pursuit of starting or running one's own business venture.

Personal Values

Fundamental beliefs and principles that guide an individual's behavior and decision-making process.

Personality Style

An individual's typical pattern of thinking, feeling, and acting in various situations.

Locus of Control

A psychological concept referring to the extent to which individuals believe they have power over events in their lives.