Question
Which of the following statementsis NOT consistentwith the rational-actor paradigm? A. People always try to respond optimally to incentives, so if outcomes are unfavorable, then
Which of the following statementsis NOT consistentwith the "rational-actor paradigm"?
A. People always try to respond optimally to incentives, so if outcomes are unfavorable, then the incentive structure may need to be adjusted.
B. People in general are rational, which means that they make decisions with some sort of desired goal or objective in mind.
C. People normally act in a self-interested manner, meaning that they would never intentionally make a decision that leaves them worse off than before.
D. People in general are rational and self-interested, which means that they always have enough information to make good economic decisions.
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