Chat with AI
Econ 4th Edition by William McEachern
Edition 4ISBN: 978-1285423548Econ 4th Edition by William McEachern
Edition 4ISBN: 978-1285423548 Exercise 2
RATIONAL SELF-INTEREST If behavior is governed by rational self-interest, why do people make charitable contributions of time and money?
Explanation
Verified
Verified
Rational self-interest and cost:
Rational self-interest is an option which is chosen to maximize the expected benefits with a given cost.
For instance, people would prefer charity as it deducts income tax amount and also satisfies the deed. So, charity could not be considered as a pure selfishness or as greed activity. Therefore, helping a needy person and feeling pleasure is also a kind of rational self-interest.
Hence, a person sometimes helps others in terms of money and time as it reduces his cost and increases his self-satisfaction level.
Rational self-interest is an option which is chosen to maximize the expected benefits with a given cost.
For instance, people would prefer charity as it deducts income tax amount and also satisfies the deed. So, charity could not be considered as a pure selfishness or as greed activity. Therefore, helping a needy person and feeling pleasure is also a kind of rational self-interest.
Hence, a person sometimes helps others in terms of money and time as it reduces his cost and increases his self-satisfaction level.
Econ 4th Edition by William McEachern
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
