EBK MICROECONOMICS
EBK MICROECONOMICS
2nd Edition
ISBN: 8220103679701
Author: List
Publisher: YUZU
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Chapter 3, Problem 2Q
To determine

The implication of optimization for economic agents.

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What is incrementalism? How does it impact decision making? How does it differ from the rational-comprehensive theory? Provide an example.
Economist Gerd Gigerenzer characterizes heuristics as “fast and frugal” ways of reaching decisions. Are there any costs to heuristics being “fast and frugal”? Explain and give an example of how a fast and frugal method for doing something in everyday life comes at some costs in terms of other attributes forgone.
Please explain why other options are incorrect
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