Econ Micro (book Only)
6th Edition
ISBN: 9781337408066
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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(1). Which of the following is the best definition of economics?
A) the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided
B) the study of how consumers spend their income
C) the study of how business firms decide what inputs to hire and what outputs to produce
D) the study of how the federal government allocates tax dollars
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
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.
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