When Economists Say That People Choose Rationally, This Means

question 26

Multiple Choice

When economists say that people choose rationally, this means

• A) they gather all relevant information before making their purchases
• B) once a pattern of behavior has been established, people tend to become set in their ways
• C) people respond in predictable ways to changes in costs and benefits
• D) people rarely make errors when they are permitted to make transactions
• E) once made, decisions are never reversed

---

Definitions:

Charismatic Authority

A form of leadership where followers are drawn to the leader's extraordinary personal qualities and the belief in their extraordinary powers or insight.

Organizations

Groups or entities with a specific purpose, structure, and system of governance, formed to achieve collective goals.

Legitimate Authority

A type of power that is recognized and accepted by individuals and society as rightful and just, often based on laws, norms, or traditions.

Authority Types

Various forms of power and control recognized in sociology, including traditional, legal-rational, and charismatic authority.