Based on Your Understanding of Your Roommate's Preferences, You Predict

question 40

Multiple Choice

Based on your understanding of your roommate's preferences, you predict that he will select the spaghetti for his lunch at the cafeteria, but instead he chooses the gyros. How do you describe this event in terms of economic theory?

• A) Your roommate is irrational.
• B) Your roommate does not know what is in his own best interests.
• C) You roommate does not know his own preferences as well as you do.
• D) You constructed a model that made a prediction, and the prediction was refuted.

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Definitions:

Stressed

A physical or psychological state resulting from circumstances that feel challenging or threatening.

Experiment

A method of research in the sciences or social sciences in which variables are manipulated to observe the effect on some behavior or mental process.

Stress

The body’s response to any demand or challenge, which can be physical, mental, or emotional, and influences the state of both mental and physical health.

Eating Habits

Patterns or behaviors surrounding how and what individuals consume, often influenced by cultural, familial, and personal factors.