Question

UESTIONS The assumption that people act rationally implies that: O a. people think only of themselives and disregard the well being of others O b. people Implicity calculate the benefits and costs of an activity to decide it is worth undertaking O c. people consider only the costs of an activity to decide whether it is worthwhile. O d. people consider only the benefits of an activity to decide whether it is worthwhille. O e. the greater the cost of doing something, the more likely the indlvidual will do it. QUESTION 6 o a. predicts correctly with 100 percent certainty O b.simplifies reality to focus on its basic elgments. O c. can never be proven wrong. O d. omits all important elements of reality O e. must be presented in mathematical terms only QUESTION7 Theory in economics D a. bears no relation to reality D b. focuses on the uniqueness of each situation. c, involves some simplication of reality to help understand economic relationships. t d approaches reality in all its complexity e involves so much distortion of reality as to be worthless.

Answer 1

Answer: 5:the assumption that people act rationally implies that:

b. people implicitly calculate the benefits and costs of an activity to decide it is worth undertaking

Answer:6 An economic model

b. simplifies reality to focus on its basic elements

Answer:7 Theory in economics  

c. involves some simplification of reality to help understand economic relationship