Question: Discuss whether you agree with the following statement: The problem with economics is that it assumes that consumers and firms always make the correct decisions.

Discuss whether you agree with the following statement: “The problem with economics is that it assumes that consumers and firms always make the correct decisions. But we know that everyone makes mistakes.”

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I agree with the statement to a certain extent Economics does make simplifying assumptions about the rationality of consumers and firms which can lead ... View full answer

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