Whether rationality assumption is violated in the following scenario. During college , Dominique discovered that her favourite subjects were astronomy, chemistry and political science, She chose to major in astronomy as had found data indicating that science majors earn higher than average wages and also because she preferred astronomy better than chemistry and political science. However, upon graduation she found that average wages in Chemistry field are 20% higher than the average wages earned by astronomers. 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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Answer 1

Question

Chapter 1, Problem 19P

To determine

To explain:

Whether rationality assumption is violated in the following scenario.

During college , Dominique discovered that her favourite subjects were astronomy, chemistry and political science, She chose to major in astronomy as had found data indicating that science majors earn higher than average wages and also because she preferred astronomy better than chemistry and political science. However, upon graduation she found that average wages in Chemistry field are 20% higher than the average wages earned by astronomers.

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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Answer 2

Question

Chapter 1, Problem 19P

To determine

To explain:

Whether rationality assumption is violated in the following scenario.

During college , Dominique discovered that her favourite subjects were astronomy, chemistry and political science, She chose to major in astronomy as had found data indicating that science majors earn higher than average wages and also because she preferred astronomy better than chemistry and political science. However, upon graduation she found that average wages in Chemistry field are 20% higher than the average wages earned by astronomers.

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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Answer 3

Question

Chapter 1, Problem 19P

To determine

To explain:

Whether rationality assumption is violated in the following scenario.

During college , Dominique discovered that her favourite subjects were astronomy, chemistry and political science, She chose to major in astronomy as had found data indicating that science majors earn higher than average wages and also because she preferred astronomy better than chemistry and political science. However, upon graduation she found that average wages in Chemistry field are 20% higher than the average wages earned by astronomers.

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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Answer 4

Question

Chapter 1, Problem 19P

To determine

To explain:

Whether rationality assumption is violated in the following scenario.

During college , Dominique discovered that her favourite subjects were astronomy, chemistry and political science, She chose to major in astronomy as had found data indicating that science majors earn higher than average wages and also because she preferred astronomy better than chemistry and political science. However, upon graduation she found that average wages in Chemistry field are 20% higher than the average wages earned by astronomers.

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.

Expert Solution & Answer

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Answer 5

Chapter 1, Problem 19P

To determine

To explain:

Whether rationality assumption is violated in the following scenario.

During college , Dominique discovered that her favourite subjects were astronomy, chemistry and political science, She chose to major in astronomy as had found data indicating that science majors earn higher than average wages and also because she preferred astronomy better than chemistry and political science. However, upon graduation she found that average wages in Chemistry field are 20% higher than the average wages earned by astronomers.

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.

Answer 6

Chapter 1, Problem 19P

To determine

To explain:

Whether rationality assumption is violated in the following scenario.

During college , Dominique discovered that her favourite subjects were astronomy, chemistry and political science, She chose to major in astronomy as had found data indicating that science majors earn higher than average wages and also because she preferred astronomy better than chemistry and political science. However, upon graduation she found that average wages in Chemistry field are 20% higher than the average wages earned by astronomers.

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.

Answer 7

Chapter 1, Problem 19P

To determine

To explain:

Whether rationality assumption is violated in the following scenario.

During college , Dominique discovered that her favourite subjects were astronomy, chemistry and political science, She chose to major in astronomy as had found data indicating that science majors earn higher than average wages and also because she preferred astronomy better than chemistry and political science. However, upon graduation she found that average wages in Chemistry field are 20% higher than the average wages earned by astronomers.

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.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 1.A - Prob. 1P Ch. 1.A - Prob. 2P Ch. 1.A - Prob. 3P Ch. 1.A - Prob. 4P Ch. 1.A - Prob. 5P Ch. 1.A - Prob. 6P Ch. 1.A - Prob. 7P Ch. 1.A - Prob. 8P Ch. 1 - Prob. 1.1LO Ch. 1 - Prob. 1.2LO

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Chapter 1 Solutions