Asked by Bianca Junio on Jun 30, 2024
Verified
Economists generally believe that:
A) buyers and sellers have all the information they can use.
B) additional information is costly to acquire.
C) decision makers have complete knowledge of all the alternatives available.
D) economic decisions result from random behavior.
E) decision makers never make mistakes.
Complete Knowledge
Refers to a hypothetical situation where all participants in a market have full and perfect information about products, prices, and other market conditions.
- Apprehend the basis of rational behavior assumption in economic studies and its effect on the process of making decisions.
Verified Answer
ZK
Zybrea KnightJul 02, 2024
Final Answer :
B
Explanation :
Economists generally believe that while buyers and sellers may have access to a lot of information, acquiring additional information can be costly. Therefore, they often make decisions based on the information that is readily available to them.
Learning Objectives
- Apprehend the basis of rational behavior assumption in economic studies and its effect on the process of making decisions.