ECONOMICS TODAY: MICRO VIEW >CUSTOM<
19th Edition
ISBN: 9781323850817
Author: Miller
Publisher: PEARSON C
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Question
Chapter 1, Problem 12P
To determine
To explain:
Which of the following predictions appear(s) to follow from a model based on the assumption that rational, self-interested individuals respond to incentives?
- For every ten exam points Myrna must earn in order to pass her economics course and meet her graduation requirements, she will study one additional hour for her economics test next week.
- A coin toss will best predict Leonardo’s decision about whether to purchase an expensive business suit or an inexpensive casual outfit to wear next week when he interviews for a high-paying job he is seeking.
- Celeste, who uses earnings from her regularly scheduled hours of part-time work to pay for her room and board at college, will decide to purchase and download a newly released video this week only if she is able to work two additional hours.
Concept Introduction:
Rationality assumption: The rationality is considered as the heart of the economics. It says that individuals choose the best decision for them with the available information. The rationality assumption assumes that individuals don’t intentionally make the decisions that make them worse off. That is to say they make decisions normally.
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ECONOMICS TODAY: MICRO VIEW >CUSTOM<
Ch. 1.A - Prob. 1PCh. 1.A - Prob. 2PCh. 1.A - Prob. 3PCh. 1.A - Prob. 4PCh. 1.A - Prob. 5PCh. 1.A - Prob. 6PCh. 1.A - Prob. 7PCh. 1.A - Prob. 8PCh. 1 - Prob. 1.1LOCh. 1 - Prob. 1.2LO
Ch. 1 - Prob. 1.3LOCh. 1 - Prob. 1.4LOCh. 1 - Prob. 1.5LOCh. 1 - Prob. AFCTCh. 1 - Prob. BFCTCh. 1 - Prob. CFCTCh. 1 - Prob. DFCTCh. 1 - Prob. 1CTQCh. 1 - Prob. 2CTQCh. 1 - Prob. 1FCTCh. 1 - Prob. 2FCTCh. 1 - Prob. 1PCh. 1 - Prob. 2PCh. 1 - Prob. 3PCh. 1 - Prob. 4PCh. 1 - Prob. 5PCh. 1 - Prob. 6PCh. 1 - Prob. 7PCh. 1 - Prob. 8PCh. 1 - Prob. 9PCh. 1 - Prob. 10PCh. 1 - Prob. 11PCh. 1 - Prob. 12PCh. 1 - Prob. 13PCh. 1 - Prob. 14PCh. 1 - Prob. 15PCh. 1 - Prob. 16PCh. 1 - Prob. 17PCh. 1 - Prob. 18PCh. 1 - Prob. 19PCh. 1 - Prob. 20PCh. 1 - Prob. 21P
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