The Assumption That Individuals Act Rationally Implies That

question 107

Multiple Choice

The assumption that individuals act rationally implies that

• A)people think only of themselves and disregard the well-being of others
• B)people undertake all those activities that yield benefits to themselves
• C)people only consider the costs of an activity to decide whether it is worthwhile
• D)the greater the cost of a charitable deed to a benefactor, the more likely he or she is to perform that deed
• E)people implicitly calculate the costs and benefits of an activity to decide if it is worthwhile

Grasp the ethical considerations and methodological guidelines in conducting health-related research.

Understand the concepts of reliability and validity in psychological assessment.

Acknowledge the role of placebos in research and their effects.

Grasp the criteria for determining cause-and-effect relationships in epidemiology.

---

Definitions:

Variable Costs

Expenses that vary in relation to the quantity of products or services a company generates.

Fixed Costs

Financial obligations that are stable irrespective of the business's production or sales figures, such as rental payments, salary bills, and insurance.

Selling Price

The cost at which a service or item is made available for purchase by buyers.

Cost Behavior

Refers to how the total costs of production change when there is a change in the level of output.