When Economists Say That People Choose Rationally, This Means

question 26

Multiple Choice

When economists say that people choose rationally, this means

• A) they gather all relevant information before making their purchases
• B) once a pattern of behavior has been established, people tend to become set in their ways
• C) people respond in predictable ways to changes in costs and benefits
• D) people rarely make errors when they are permitted to make transactions
• E) once made, decisions are never reversed

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Definitions:

Permanent Change

Alterations in a system or behavior that are enduring and cannot easily be undone.

Learning

The process of acquiring new understanding, knowledge, behaviors, skills, values, and preferences.

Experience

The knowledge or skill acquired through direct observation or participation in events or activities.

Imitating Behaviour

is the act of copying the actions, attitudes, or mannerisms of another individual or group, often as a way to learn or fit in socially.