Podcast
Questions and Answers
What is one of the main premises upon which modern economics is based?
What is one of the main premises upon which modern economics is based?
- The irrationality of economic agents
- The equal distribution of income
- The maximization of social welfare
- The rationality of economic agents (correct)
How does a perfectly competitive market economy allocate resources according to the text?
How does a perfectly competitive market economy allocate resources according to the text?
- In a sub-optimal way
- In a Pareto-inefficient way
- In an inefficient manner
- In a Pareto-efficient way (correct)
Why could policy-makers still improve the workings of a market economy even if the two main premises of modern economics were correct?
Why could policy-makers still improve the workings of a market economy even if the two main premises of modern economics were correct?
- Given that real-world economies are not perfectly competitive (correct)
- As a result of unequal income distribution in markets
- Because real-world economies are perfectly competitive
- Due to the perfectly competitive nature of real-world economies
What does it mean for economic agents to be considered 'rational' in economics?
What does it mean for economic agents to be considered 'rational' in economics?
What recent developments in the neurosciences challenge the assumption of economic agents' rationality?
What recent developments in the neurosciences challenge the assumption of economic agents' rationality?
Why is the assumption of economic agents' rationality considered the backbone of economics?
Why is the assumption of economic agents' rationality considered the backbone of economics?
What may explain addictive behavior like smoking and gambling according to the text?
What may explain addictive behavior like smoking and gambling according to the text?
What is rarely observed in the real world as per Weber's parlance?
What is rarely observed in the real world as per Weber's parlance?
What is the main source of macroeconomic volatility mentioned in the text?
What is the main source of macroeconomic volatility mentioned in the text?
In mainstream economics, what does the 'Rationality Principle' boil down to?
In mainstream economics, what does the 'Rationality Principle' boil down to?
What would a descriptive or explanatory theory of rationality include according to the text?
What would a descriptive or explanatory theory of rationality include according to the text?
How does the text describe the 'Rationality Principle' in mainstream economics?
How does the text describe the 'Rationality Principle' in mainstream economics?
Flashcards are hidden until you start studying
