In Economics, We Observe That People Consistently Make Irrational Decisions

question 14

Multiple Choice

In economics, we observe that people consistently make irrational decisions in certain situations and choose to do something even if the:

• A)benefits outweigh the opportunity costs.
• B)opportunity costs outweigh the benefits.
• C)benefits outweigh the sunk costs.
• D)sunk costs outweigh the opportunity costs.

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Definitions:

Society's Rules

The norms, laws, and conventions established by a community or society that dictate acceptable and expected behaviors within that society.

Objective

Unbiased and not influenced by personal feelings or opinions in considering and representing facts.

Introverted Feeling

A cognitive function characterized by deep, introspective emotions and decisions based primarily on personal values and feelings.

Collective Unconscious

A concept proposed by Carl Jung, referring to the part of the unconscious mind which is derived from ancestral memory and experience and is common to all humankind.