Which of the Following Is NOT an Alleged "Unrealistic" Assumption

question 261

Multiple Choice

Which of the following is NOT an alleged "unrealistic" assumption that proponents of behavioral economics suggest are commonly utilized in traditional economic models based on the rationality assumption?

• A) unbounded selfishness
• B) unbounded rationality
• C) unbounded will power
• D) unbounded resources

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Definitions:

Rent-seeking Activities

Efforts to increase one’s share of existing wealth without creating new wealth, often through manipulation of the economic environment.

Economic Efficiency

Economic Efficiency occurs when a system allocates resources in a way that maximizes the production of goods and services at the lowest cost.

Political Corruption

The abuse of entrusted power by political leaders for private gain, undermining democracy and governance.

Special-interest Effect

Describes how policy decisions can be influenced by small groups who stand to gain substantially, often at the expense of the larger population.