The Major Criticism of the View That Expectations Are Formed

question 31

Multiple Choice

The major criticism of the view that expectations are formed adaptively is that

• A)this view ignores that people use more information than just past data to form their expectations.
• B)it is easier to model adaptive expectations than it is to model rational expectations.
• C)adaptive expectations models have no predictive power.
• D)people are irrational and therefore never learn from past mistakes.

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Definitions:

Cognitive Theory

A theoretical perspective that emphasizes internal mental processes as the key to understanding human behavior.

Working Model

In cognitive theory, a set of assumptions that the individual uses to organize perceptions and experiences. For example, a person might assume that other people are trustworthy and be surprised by an incident in which this working model of human behavior is erroneous.

Erikson

Refers to Erik Erikson, a developmental psychologist known for his theory on the psychosocial development of humans, highlighting the influence of society and culture on personality development across eight stages of life.

Autonomy

The capacity to make an informed, uncoerced decision; often emphasizes independence and self-determination.