Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 2, Problem 5SCQ
Individuals may not act in the rational, calculating way described by the economic model of decision making, measuring utility and costs at the margin, but can you make a case that they behave approximately that way?
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Describe the procedure of considering economic decisions?
Why does knowing the facts help people maximize their choices
Herbert Simon, the Novel Prize-winning economist, described the rational model of decision-making in what way?
Chapter 2 Solutions
Principles of Economics 2e
Ch. 2 - Suppose Alphonsos town raised the price of bus...Ch. 2 - Return to the example in Figure 2.4. Suppose there...Ch. 2 - Could a nation be producing in a way that is...Ch. 2 - What are the similarities between a consumers...Ch. 2 - Individuals may not act in the rational,...Ch. 2 - Would an op-ed piece in a newspaper urging the...Ch. 2 - Would a research study on the effects of soft...Ch. 2 - Explain why scarcity leads to tradeoffs.Ch. 2 - Explain why individuals make Choices that are...Ch. 2 - What is comparative advantage?
Ch. 2 - What does a production possibilities frontier...Ch. 2 - Why is a production possibilities frontier...Ch. 2 - Explain why societies cannot make a choice above...Ch. 2 - What are diminishing marginal returns?Ch. 2 - What is productive efficiency? Allocative...Ch. 2 - What is the difference between a positive and a...Ch. 2 - Is the economic model of decision-making intended...Ch. 2 - What are four responses to the claim that people...Ch. 2 - Suppose Alphonsos town raises the price of bus...Ch. 2 - During the Second World War, Germanys factories...Ch. 2 - It is clear that productive inefficiency is a...Ch. 2 - What assumptions about the economy must he true...Ch. 2 - Do economists have any particular expertise at...Ch. 2 - If the price of a magazine is 4 each, what is the...Ch. 2 - If the price of a pie is 12, what is the maximum...Ch. 2 - Draw Maries budget constraint with pies on the...Ch. 2 - What is Maries opportunity cost of purchasing a...
Additional Business Textbook Solutions
Find more solutions based on key concepts
E2-13 Identifying increases and decreases in accounts and normal balances
Learning Objective 2
Insert the mis...
Horngren's Accounting (11th Edition)
Materials are added at the beginning of a production process, and ending work in process inventory is 30% compl...
Principles of Accounting Volume 2
Define leadership and distinguish between leadership and management.
Principles of Management
Huang Inc. issued 100 bonds with a face value of $1,000 and a 5-year term at $960 each. The journal entry to re...
Principles of Accounting Volume 1
E5–26 Journalizing adjusting entries including estimate sales returns
Learning Objective 3, 4
Emerson St. Boo...
Horngren's Accounting (12th Edition)
What is an internai change order and how is it used?
Construction Accounting And Financial Management (4th Edition)
Knowledge Booster
Similar questions
- Identify some essential elements common to any rational decision-making process?arrow_forwardWatch on YouTube Questions: A) Detail and describe a decision that you made in the past that contradicts the assumption of rationality in standard economic theory? How and why was it irrational according to standard economic theory?arrow_forwardWhat are the benefits of considering the economic decisions?arrow_forward
- Joab and his friends used to play a game where they put on a dog's electric fence collar and tried to stand over the electric fence line because, after careful consideration of the costs and benefits, they decided that the benefits of watching their friends get shocked outweighed the costs of being shocked themselves. According to the economic way of thinking, by playing this game, Joab and his friends were O not responding to the incentives they faced. making an irrational choice. making a rational choice. not fully considering the costs and benefits of their decision since this is obviously a mistake for anybody to do.arrow_forwardDo consumers always make rational consumer decisions when buying economic goods?arrow_forwardDescribe 3 ways in which human decision making differs from the rational individual conventional economic theory.arrow_forward
- Why must economic theories and models be abstract?arrow_forwardDiscuss the impact of rational self-interest on each of the following decisions: a. Whether to attend college full time or enter the workforce full time. b. Whether to buy a new textbook or a used one. c. Whether to attend a local college or out of town college.arrow_forwardWhat are the likely consequences of not intervening?arrow_forward
- Peer pressure is an important influence on the behavior of youngsters. For instance, many preteens begin smoking because their friends pressure them into being “cool” by smoking. Using utility theory, how would you explain peer pressure? How would this compare with the explanations provided by behavioral economics and neuroeconomics?arrow_forwardWhat does behavioral economics have to say about each of the following statements? a. “Nobody is truly charitable—they just give money to show off.” b. “America has a ruthless capitalist system. Considerations of fairness are totally ignored.” c. “Selfish people always get ahead. It’s like nobody even notices!”arrow_forwardAugi carefully plans out an early morning exercise routine to lose weight and get fit. When it's time to work out, however, Augi just "does to sleep in. Behavioral economics would say that Augi weighed the costs and benefits and made a rational economic decision to sleep in. used System 1 of her brain to formulate her workout plan, but then gave in to System 2 when she chose to sleep in. used System 2 of her brain to formulate her workout plan, but then gave in to System 1 when she chose to sleep in. is fundamentally lazy and incapable of sticking to a workout plan.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning