Statement I: Economic Behaviorists Challenge the Idea That Rational Behavior

question 84

Multiple Choice

Statement I: Economic Behaviorists challenge the idea that rational behavior and economic self-interest are the only factors motivating economic behavior.
Statement II: The classical economists and the rational expectationists believe that wages are downwardly flexible.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Public Interest

The welfare or well-being of the general public, often considered in decision-making processes to ensure policies and actions benefit the majority.

Government

The system or group of people governing an organized community, often a state or nation.

External Benefit

A positive effect or advantage that results from a product or service's production or consumption, which affects third parties not directly involved in the transaction.

Tax

A financial charge imposed by a government on individuals or entities, primarily to raise revenue for public expenditures.