Multiple Choice
Economic theory assumes people are always rational. Yet observation indicates that people do not always behave rationally. Which of the following is not a systematic mistake people make in their decisionmaking?
A) People often interpret information to fit beliefs already held.
B) People place too much emphasis in their decisionmaking on a few extreme situations of which they are aware.
C) People tend to view current prices differently than they view future prices.
D) People are too sure of their own abilities.
Correct Answer:
Verified
Correct Answer:
Verified
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