People Are Rational - Online Tutor, Practice Problems & Exam Prep

People Are Rational

So let's go ahead and define some key ideas or what we can think of as assumptions for this course. The first one here is that people are rational. In this class, when we define rational, we're thinking individuals and firms are attempting to do their best. Right? They're trying to do their best with what they have. And our best, it's not always perfect, but we do the best we have. So the idea here is, like, we're not intentionally trying to make ourselves worse off. Right? We're not intentionally self-destructive, we'll say. Not intentionally self-destructive. Alright? That's the idea of being rational here. So when you take an exam, right, you're going to go into the exam, you're going to study for the exam, you're going to use CLUTCH, and, you know, if there's something on the exam that you don't know, you're going to do your best guess. Right? You're going to try your best to get it right. You're not just going to go in there and just start bubbling at random and see what happens. Right? Then why would you even be in the course? And another example, how about a factory? A manager of a factory. Right? He's going to he doesn't have unlimited money. He's not going to be wasting resources. Right? He's not going to be just throwing stuff away. He's going to be trying to maximize his output and minimizing his inputs. Right? You know, minimizing inputs or minimizing waste. All these things just to do his best.

In economics, marginal means

• A. Additional
• B. Extra
• C. One more
• D. All of the above