Rational choice Flashcards
1
Q
Implicit costs
A
Indirect costs that aren’t directly accounted and are sometimes difficult to measure
2
Q
What are the 4 pitfalls in standard C/B analysis?
A
Implicit costs
Sunk costs
Measuring C/B as absolute not proportional terms
Failure to account for average marginal distinction
3
Q
Self-interest standard of rationality
A
Factors C/B only directly relating to the 1st party
4
Q
Present aim standard of rationality
A
People act efficiently to achieve any aim
5
Q
Criticism of Self-interest standard of rationality
A
Narrow view of behaviour
6
Q
Criticism of Present aim standard of rationality
A
Can be used to justify any behaviour even if destructive
