Asked by
Malik Baker
on Oct 09, 2024
Verified
Alex sees that his neighbors' lawns all need mowing.He offers to provide the service in exchange for a wage of $20 per hour.Some neighbors accept Alex's offer and others refuse.Economists would describe Alex's behavior as:
A) rational self-interest because he is attempting to increase his own income by identifying and satisfying someone else's wants.
B) greedy because he is asking for a high wage that some of his neighbors can't afford to pay.
C) selfish because he is asking for a wage that is higher than others might charge.
D) irrational because some neighbors refused his offer.
Rational Self-interest
The principle that individuals tend to make decisions that result in the most personal benefit.
Satisfying Wants
Fulfilling the desires or needs of consumers, often a goal for businesses to meet through the production of goods and services.
Income
A broader term that encompasses money received on a regular basis from work, property, investments, or welfare payments.
- Differentiate between rational and irrational behavior within economic settings.
- Understand the significance of intentional actions in the process of making economic decisions.
Verified Answer
KF
Learning Objectives
- Differentiate between rational and irrational behavior within economic settings.
- Understand the significance of intentional actions in the process of making economic decisions.