What Do Economists Generally Assume About the Capacity of Consumers

question 14

Multiple Choice

What do economists generally assume about the capacity of consumers to make decisions?  

• A) that buyers and sellers have all the information they need to make decisions 
• B) that buyers acquire information as long as the additional benefits exceed the additional costs of acquiring this information 
• C) that decision makers never make mistakes 
• D) that economic decisions result from random behaviour

---

Definitions:

Kruskal-Wallis Test

A nonparametric test used to determine if there are statistically significant differences between two or more groups of an independent variable on a continuous or ordinal dependent variable.

P-value

A statistical measure that helps scientists determine the significance of their research results, indicating the probability of observing the results if the null hypothesis is true.

Coffee Shop

A retail establishment that sells coffee, tea, and other beverages, often accompanied by snacks or light meals.

Supermarket Chain

A network of large retail stores offering a wide variety of goods including groceries and household items.