To an Economist, Rational Behavior Means

question 15

Multiple Choice

To an economist, rational behavior means:

• A) that an individual is sane
• B) that consumers and producers are purposeful and consistent
• C) that people do the best that they can given the constraints that they face
• D) B and C only

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Definitions:

Logging Company

A business involved in cutting down trees, processing timber, and possibly engaging in forestry management and sales of wood products.

Secondary Sector

Part of the economy that involves industrial activity, including manufacturing and construction, that processes raw materials into finished goods.

Economy

The large set of interrelated production, consumption, and exchange activities that aid in determining how scarce resources are allocated.

Salmon Processing

The industrial activity of preparing salmon for market, involving cleaning, canning, freezing, or smoking the fish.