Chapter 8, Problem 1DQ

To determine

The error in the behavior.

Explanation of Solution

Here, the individual desires and enjoys to be committed to the stupid things which leads towards heavy debts. If the actions have unforeseen consequences, we could have categorized them under the errors. But since, the individual likes to commit such actions and get into the debt issues knowingly, the actions cannot be considered as an error.

Here, even though, the individual does stupid things, he gets the desired results. Thus, they do not result in reducing the chance for the success. Thus, the stupid behavior of an individual does not constitute any systematic errors. Thus, he did not commit any errors.

Economics Concept Introduction

Concept introduction:

Error: According to theeconomists, error is an action which reduces the chance of success for an action.