If Economists Are Making the Assumption That Business People Try

question 214

Multiple Choice

If economists are making the assumption that business people try to maximize profits, the best way to determine whether this assumption is useful or not is to

• A) see whether it generates accurate predictions about the choices of business people.
• B) ask business people whether it is true or not.
• C) find out whether U.S. businesses are more profitable than European businesses.
• D) take a survey of people and see if they agree with this assumption.

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Definitions:

Disulfiram

A drug that causes an aversive reaction when taken with alcohol; used to treat alcoholism; also known as Antabuse.

Alcohol Abuse

The excessive or problematic drinking of alcohol that leads to harm or distress, which can negatively impact social, occupational, or health aspects of life.

Unpleasant Effects

Negative reactions or side effects experienced from a treatment, medication, or substance.

Psychological Interventions

Therapeutic techniques aimed at addressing mental health issues, often involving counseling, therapy, or structured activities.