Which of the Following Is a True Statement About the Economic

question 229

Multiple Choice

Which of the following is a true statement about the economic assumption of rationality?

• A) Individuals who are rational necessarily ignore the interests of others.
• B) Individuals generally act as though they are rational.
• C) Individual behavior may be irrational but group behavior is always rational.
• D) People make decisions as if they are omniscient.

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Definitions:

Stable

Characterized by consistency, reliability, and a lack of significant change or volatility over time.

Normative Life Events

In the timing-of-events model, commonly expected life experiences that occur at customary times.

Social Clocks

Societal expectations regarding the appropriate timing for major life milestones, such as education, marriage, parenthood, and retirement.

Society's Expectations

The norms, values, and roles that a community anticipates its members to adhere to.