In recent years the Nobel Prize in economics goes to work in behavioral economic theory. In...

In recent years the Nobel Prize in economics goes to work in behavioral economic theory. In your text the authors state the basic economic theory is people make rational decisions? The links led to stories about lottery winners or losers depending on your viewpoint. If society uses rational behavior why do some lottery winners go broke?

The bulk of economic analysis continue to reply on rational assumptions. Economist continue to contend that rational thought is a reasonable viewpoint.

Is this a micro or macroeconomic issue?

Is this a reasonable assumption?

Is this a positive or normative assumption?

How does self-interest come into play?

Explain why economics a science or a social science?

Expert Solution

Rahul Sunny answered 2 years ago

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