Question

In: Economics

the assumptions of the optimistic model

the assumptions of the optimistic model

Solutions

Expert Solution

Optimists assume that the best will happen or that they will be luckier than other people. They are hopeful, believing that good things can happen to them.

Bad optimists are blind gamblers. Their assumption that fate will always deal them a good hand leads them to lose out, and possibly often and big-time. They do not learn from experience and just keep sticking their necks out too far.

Optimists explain things in three ways:

  • Internality – the cause of things are within my control

  • Stability – the cause of things will always be present

  • Globality – causality will influence not only what happened, but everything else

Effective optimists, on the other hand, have some sense of realism, but their attitude leads them to not only take risks but act in a way that increases the chance of good things happening. They also set more challenging goals and so increase their chance of greater success.


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