ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN: 9781337408059
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 14, Problem 12P
To determine
The Limitations challenging the rational economic decision making.
Concept Introduction:
Rational decision making is when people take a logical decision between choices available to gain maximum satisfaction in return.
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Discussion Prompt: What are the limits of
rational decision-making?
1. The rules regarding economic decision
maker behavior are:
Group of answer choices
A: Consumers behave rationally and
maximize utility, but producers do not
behave rationally
B: Producers behave rationally and
maximize profits, but consumers do not
behave rationally
C: consumers are ratiional and maximize
utility, and producers are rational and
maximize profits
D: Consumers maximize total
consumption, and producers maximize
production
QUESTION 39
39. Economic rationality or optimization
means that people should compare the consequences of alternative actions or choices and select the one that maximizes net benefits (net of costs).
is not an acceptable approach to life according to many philosophers, because they claim that some things, such as human life, should not be subject to this kind of
calculation of costs and benefits.
does not apply to choices involving human life.
all of the above.
only (a) and (b) are correct.
OO C
Chapter 14 Solutions
ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
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