Rational, self-interested people would never end up worse off by ...

[Diane]

Rational, self-interested people would never end up worse off by any decision they make. Obviously, people often make mistakes or have regrets. Therefore, people do not act rationally or out of self-interest.
 
  Do you agree with these statements? Why or why not?

Question 2

The funds that polluters pay that gives them the right to discharge into the air or water a certain amount of pollution are
 
  A) special subsidies.
  B) regulation fees.
  C) external costs.
  D) effluent fees.

[Jossy]

Answer to Question 1

No. People may make mistakes because they often do not have enough information to make the best decision or because they are wrong about the effect of their actions. When they make a decision, given their circumstances and the information they have, they make the best choice for themselves.

Answer to Question 2

D