When economists assume that people are rational and respond to ...

[RYAN BANYAN]

When economists assume that people are rational and respond to incentives, they mean
 
  A) people act with kindness. B) people act in their own self-interest.
  C) people are altruistic. D) people are selfish.

Question 2

Consider two economies: A and B. In economy A, the work culture is such that people do not mind working for 12 hours a day. On the contrary, in economy B, people work for a maximum of 6 hours in a day. If the culture hypothesis holds, then:
 
  A) the growth rate in both economies are likely to fluctuate randomly.
  B) economy A is likely to grow faster than economy B.
  C) economy B is likely to grow faster than economy A.
  D) both economies are likely to grow at the same rate.

[jordangronback]

Answer to Question 1

B

Answer to Question 2

B