QUIZ 2: RATIONAL CHOICE THEORY

Which of the following is a major assumption underlying rational choice theory? Rational choice theory assumes that people are/will

• irrational and generally make decisions that minimize reward while maximizing cost

• ultimately self-interested and any choices we make will harm the greater good

• make decisions based on maximizing the common good even if it means acting irrationally

• individuals are rational actors who always make choices based on maximizing self-interest

Which of the following is NOT an assumption of rational choice theory?

• Individuals act rationally.

• Individuals act in their collective interest.

• Individuals have sufficient information to make rational choices.

• Preferences are transitive

Vic prefers to play basketball to jogging but prefers jogging to tennis, which means he prefers basketball over tennis. What principle of rational choice theory does this demonstrate?

• Transitivity

• rationality

• completeness

• exchange

The basic teachings of rational choice theory are taken from:

• Sociology

• Economics

• Politics

• Psychology

RCT states that individual’s action are based on their preference, beliefs and feasible strategies.

• TRUE

• FALSE

Emotions and attachment are necessary in making a decision to get the best results.

• TRUE

• FALSE

Rational individuals used to rank alternatives from best to worst and choosing the most feasible action/outcomes even if it will yield negative result.

• TRUE

• FALSE

In applying RCT, people act in a selfish manner , using reason to get what they want.

• TRUE

• FALSE

RCT predicts the outcome and the pattern of choices.

• TRUE

• FALSE

RCT states that people act upon what they believe will be beneficial to others.

• TRUE

• FALSE