ECON-3010 D2 Home Economicus
Respond to one of the prompts:
- Describe a behavior either you or someone you know has engaged in that you would describe as irrational. Why would you consider this behavior irrational? Was it rational in the moment but irrational long-term? What was the motivation for engaging in this behavior?
- Having read about ‘homo economicus’, what are your thoughts about the assumptions of classical economics? Which assumptions do you find particularly questionable? Explain with examples.
SOLUTION
An example of an irrational behavior is quitting a job without having a plan to move forward. An old co-worker of mine quit a year or so ago, however he did not have another job lined up or any type of plan moving forward. I would consider this behavior irrational because he did not think his decision through clearly. I believe he let an argument between him and the business owner poison their relationship and changed his perspective about his job………….. Purchase the full solution for $5