Which of the Following Statements Best Reflects How a Behavioral

question 22

Multiple Choice

Which of the following statements best reflects how a behavioral economist views individual decision making?

• A)Alex makes wrong decisions sometimes, but usually it is only when he has been given bad information.
• B)Kara carefully calculates and weighs the expected benefits and costs of every option before making a decision.
• C)Alyssa may appear to care about others, but even her seemingly altruistic behaviors are really about furthering her own interests.
• D)Balin tries to make good, well-thought-out decisions, but his desire for utility in the present means that he often gives in to costly temptations.

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Definitions:

Foreign Producers

Companies or individuals that produce goods or services in a country other than where the products are consumed.

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specified time.

Tariff

A tax imposed on imported goods and services to raise their price, thereby protecting domestic industries from foreign competition.

Liberalize International Trade

The process of reducing tariffs, quotas, and other barriers to allow for the free flow of goods and services across national borders.