Question

People are assumed to be rational and as such they are ___________ ,meaning they never look back with "buyer's remorse". An example is When Homer says that he "I'm never eating chili again." he is exhibiting irrationality because he lacks This economic "quality"

a. realism b. time consistant c. diminishing marginal utility d. rationality

Answer 1

Option B

• People exhibit rational behaviour, if they choose what is best for them among all other alternatives and if the decision making is involved overtime they are said to be time consistent which means that they never look back with "buyers remorse".
• A person exhibits irrational behaviour if they make decisions which lacks Economic quality and can lead to loss of Economic welfare and can cause personal issues.
• An example is when Homer says that "I'm never eating chilli again", he is exhibiting irrationality because he lacks this Economic quality.