Question

Which one of the following statements is false?

		The neoclassical model came to dominate economic thinking in the twentieth century.
		The neoclassical model takes a narrower view of human motivations than the behavioral model.
		The neoclassical model used solar energy as the primary input to production.
		The idea of rationality is at the core of the neoclassical model.

Answer 1

The neoclassical model used solar energy as the primary input to production.

( > Third statement is wrong .Neoclassical models focus on labour and capital as primary inputs to production not solar energy .

* Advent of Neoclassical Economics happened in 20th century. So first statement is right.

* The human behaviour is reduced by neoclassical theory for two main hypostases - the pursuit of satisfaction for the Consumer and the search for profits from the producer. So second statement is correct.

* Individual is assumed to be rational in neo classical theories. So fourth statement is correct. )