Asked by Daria Matvienko on May 11, 2024
Verified
The perfectly rational characteristics embodied in Economic Persons exist in many decision makers.
Perfectly Rational
A theoretical state in decision-making where an individual makes decisions that lead to the optimal outcome, based entirely on logical reasoning.
Economic Persons
A theoretical concept suggesting that individuals act out of self-interest, making rational decisions to achieve the greatest personal benefit.
- Recognize the impact of cognitive biases on decision-making.
Verified Answer
AD
Aberlynn DerosierMay 17, 2024
Final Answer :
False
Explanation :
Economic Persons, or "rational actors" in economic theory, are simplifications that assume individuals always make perfectly rational decisions to maximize utility, which does not fully capture the complexity and imperfections of real human decision-making.
Learning Objectives
- Recognize the impact of cognitive biases on decision-making.
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