Can Human Beings Always Make Rational Decisions

question 53

Multiple Choice

Can human beings always make rational decisions

• A)No, it is not always rational in the real world, even though rationality is an important assumption in most economic models.
• B)Yes, it is almost always rational in the real world, even though rationality is not an important assumption in most economic models.
• C)Yes, it is less complex than is assumed in conventional economic theory.
• D)No, in the real world, it has very little to do with either economics or psychology.

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Definitions:

Threshold

The point at which a stimulus is strong enough to be detected or to cause a response.

Difference Threshold

The smallest detectable difference between two stimuli or the minimum change in a stimulus that can be correctly perceived as differing from a reference stimulus.

Just Noticeable Difference

The minimum difference in stimulus intensity that a specific sense (like sight, hearing, taste, touch, or smell) can detect.

Optic Nerve

The nerve that transmits sensory information from the eye to the brain.