The Assumption That Individuals Act Rationally Implies That People

question 71

Multiple Choice

The assumption that individuals act rationally implies that people:

• A) think only of themselves and disregard the well-being of others.
• B) undertake all those activities that do not have any marginal benefit.
• C) only consider the costs of an activity to decide whether it is worthwhile.
• D) perform charitable deeds only if the cost is high for the benefactor.
• E) people implicitly calculate the costs of and the benefits from an activity to decide if it is worthwhile.

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Definitions:

Dopamine

A neurotransmitter involved in the reward center of the brain, influencing motivation, pleasure, and movement.

Agreeableness

A personality trait that reflects a person's tendency to be compassionate, cooperative, and friendly.

Oxytocin

A hormone and neurotransmitter involved in childbirth and breastfeeding, also associated with empathy, trust, sexual activity, and relationship-building.

Middle Frontal Gyrus

A region of the brain located in the frontal lobe, implicated in various cognitive functions, including attention and memory processes.