The Assumption of Rationality in Economics Implies That

question 68

Multiple Choice

The assumption of rationality in economics implies that:

• A)people perfectly understand their own preferences.
• B)people can overcome economic obstacles in the best possible way.
• C)people can make accurate calculations and they have a perfect foresight.
• D)people make choices with an eye toward attaining objectives they have chosen.

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Definitions:

Transference

A psychological phenomenon where feelings, desires, and expectations from one relationship are unconsciously redirected to another relationship.

Biological Dysfunction

Abnormalities in physiological functioning that can lead to disease, disorder, or disability.

Situational Problems

These are challenges or issues that arise out of specific contexts or environments, requiring contextual understanding for resolution.

Psychotherapy

A form of treatment for mental and emotional disorders, using psychological methods, particularly when based on regular personal interaction, to help a person change behavior and overcome problems in desired ways.