Which of the Following Statements About Rationality Is True?Economists Wish

question 138

Multiple Choice

Which of the following statements about rationality is true?Economists wish to prove that all individuals are rational.Engaging in a behavior for which the marginal costs exceed the marginal benefits is irrational.As long as the marginal benefit of an action is positive, the action is rational.Individuals are hardly ever rational.

• A) II only
• B) I and III
• C) II and IV
• D) II, III, and IV

---

Definitions:

Panacea

A universal remedy or solution to all diseases or problems.

Psychologically Addictive

The condition where a behavior or substance leads to a compulsive craving despite potential harmful consequences due to mental or emotional dependency.

High Status

A position of authority, respect, or prestige in a social hierarchy or organization.

Pleasure

A feeling of happiness, enjoyment, or satisfaction derived from experiences that are enjoyable or gratifying.