Q2 DISS

A positive economy is based on individuals rationality and _________________.

• Self-Interest

• Choices

• Behavior

• Thinking

These are the unseen forces in Invisible hand theory.

• Demand and rationality.

• Supply and Demand

• Supply and Economy

• Demand and Liability

"People place greater value on some dollars than others, even though all dollars have the same value." Who said this?

• Robert Thaler

• Richard Gomez

• Richard Taler

• Richard Thaler

What is the main goal of RTC?

• To explain why individuals and small groups make certain choices, based on specific interest and rewards.

• To make individuals and small groups make certain choices, based supply and demand.

• To explain why individuals and larger groups make certain choices, based on specific costs and rewards.

He is the father of Modern Economics.

• Adam Levine

• Adam Sandler

• Adam Smith

• Adam Lambert

The higher the supply the lower the demand, and the lower the demand the higher the supply.

• TRUE

• FALSE

Explain the Rational Theory using the Rational Actors, Self-Interest and Invisible hand.

Relate the attached figure to Rational Choice Theory.