Question

According to the adaptive rationality standard, people’s goals:

Multiple Choice

• are fixed, and people are efficient at pursuing whatever goals they happen to hold at the moment of action.

• are a choice variable, and people’s choices about which goals to pursue are made efficiently.

• are a choice variable, and people may not be efficient at choosing which goals to pursue.

• are fixed, and people are often inefficient at pursuing those goals, which explains why people experience regret.

Answer 1

Option B.

• The adaptive rationality standard assumes that people do not exhibit selfish behaviour while showing their preferences, as doing so will also benefit tthem.People will make choices rationally that are in their self interest and can help them in solving commitment or agreement problems.
• According to this standard, people's choice are choice variable and people's choices about which goal to pursue are made efficiently. These choices have different values in different situations and are hence choice variable.