_____ Models Describe How People Are Irrational Decision Makers,whereas _____

question 183

Multiple Choice

_____ models describe how people are irrational decision makers,whereas _____ models state that people are rational decision makers.

• A) Normative; descriptive
• B) Descriptive; normative
• C) Heuristic; algorithm
• D) Algorithm; heuristic

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Definitions:

Absolute Price

The price of a good or service without taking inflation or purchasing power into account.

Indifference Curves

A graph showing different bundles of goods between which a consumer is indifferent, pointing out the preferences of the consumer for one combination of goods over another.

Bowed Inward

A description often used in economics to illustrate a production possibility frontier that indicates increasing opportunity costs for producing goods.

Budget Constraint

The limit on the consumption bundles that a consumer can afford to purchase based on their income and the prices of goods and services.