Bundle: ECON MICRO, 5th + Aplia, 1 term Printed Access Card
5th Edition
ISBN: 9781337192712
Author: William A. McEachern
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 14, Problem 5.12P
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.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
1 explain the role of ceteris paribus in economic analysis
3. What are the benefits to make rational decision?
10 please quickly thanks !
Researchers have observed that both household consumers and large-scale business consumers do not change their consumption of water even when the price of water increases dramatically. Even when individuals express an interest in consuming less water in order to be more environmentally friendly, water consumption rarely declines. One reason why we may see individuals making sub-optimal decision regarding water consumption is:
a.There is a lack of feedback.
b.All of these are true.
c.Users may be mindless about water consumption.
d.The benefits and costs often occur at different times.
Chapter 14 Solutions
Bundle: ECON MICRO, 5th + Aplia, 1 term Printed Access Card
Knowledge Booster
Similar questions
- Would a research study on the effects of soft drink consumption on childrens cognitive development he a positive or normative statement?arrow_forward2) Can i get help with this question?arrow_forward9. Cost-benefit analysis A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees and remodeling buildings, to make the campus more aesthetically pleasing. For the students of the college, the visual appearance of the campus is be classified as a public good. and The benefit of the beautification initiative, as suggested by the survey, is $ cost, the college administrators Suppose the college administrators estimate that the beautification initiative will cost $61,110. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 2,240 students, asking each of them their willingness to pay for the beautification project. The average willingness to pay, as revealed by the survey, is $20. Thus, the visual appearance would undertake the beautification initiative. Because the estimated benefit is than the The calculation of the benefit of the beautification…arrow_forward
- Scenario The government of the island nation of Autarka has become increasingly concerned about the health and wellbeing of low income households. Medical experts stress the importance of a healthy diet in this regard. They have determined that, ideally, a household would consume at least 10kg of fresh fruit and vegetables each week. The government has proposed implementing a new voucher scheme to ensure that the 10kg per week consumption target is met. Under the government’s proposal, the vouchers would be redeemable for fresh fruit and vegetables, but could not be used for other types of food, or for non-food consumption. Moreover, to limit the cost of the voucher scheme, the value of the vouchers sent to a household would be linked to the household’s income. Community groups in Autarka have expressed concern that a voucher scheme is unnec- essarily paternalistic; depriving low income households of the choice of how to spend their income. These groups argue that the government’s…arrow_forward1. Part 1 (a) What are the three basic axioms of preferences in the rational choice model that are sufficient to ensure that a utility function exists? (b) What is it called when one of those axioms is violated? (c) What is a reference point? (d) Draw a graph of the indifference curves of someone who could be influenced by either of two reference points. (e) Is one of the axioms above violated by those indifference curves? If so, which one? (f) Explain how those indifference curves violate the axiom you identified, by labeling some points on the indifference curves and indicating the exact violation.arrow_forward8. The interaction of individual choices Because eels are highly endangered as a species, many governments enact laws prohibiting fishing along their migration route. Initially, eel fishers complain about this restriction on the locations they can fish, but after a while they notice that the number eels swimming outside regulated areas is much higher than it was before. With the laws in place, eel fishers end up catching a greater quantity of eels than they did prior to the enactment of the laws. Which of the following principles of economic interaction best describes this scenario? O Markets allocate goods effectively. O When markets do not achieve efficiency, government intervention can improve overall welfare. O There is a tradeoff between equality and efficiency. O Markets usually lead to efficiency.arrow_forward
- Suppose the following table reflects the total satisfaction (utility) derived from eating pizza: Quantity consumed Total utility 1 2 3 4 6. 7 47 92 122 135 137 120 70 (a) What is the marginal utility when the 4th pizza is eaten? (b) When does marginal utility first diminish? (c) When does marginal utility first turn negative?arrow_forward4arrow_forwardQuestion 7: When economists state that individuals make rational choices, they mean: O individuals always make the right choice that improves their health and longevity. O most consumer decisions require individuals to spend a long time doing substantial background research. price is generally less relevant than benefit when an individual makes decisions. O individuals compare the expected benefits and costs of actions when making decisions.arrow_forward
- Only typed Answerarrow_forwardDear Expert, my question is attached as an image - I have provided all question responses very clearly. Kindly note that the question is asking me to interact with the graph and highlight a particular area. Please be very clear in which area of the graph you'd wish to highlight. Either upload an image that clearly depicts which part of the graph you'd like to highlight, or perhaps a sketch. Kindly leave no room for confusion regarding where I must highlight the graph.arrow_forwardQuestion 3 Saved According to the rational choice model which of these two events should be valued more by rational consumers: (A) gift of mug valued at $10, (B) finding the mug that you thought was lost, which cost you $10 to purchase. O a) Event A O b) Event B c) Both events should have the same value O d) There is really no way to rationally decide Previous Page Next Page Page 3 of 15 Submit Quiz 15 of 15 questions savedarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...EconomicsISBN:9781337091985Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...
Economics
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax