Victor lives in a country with a command economy. he feels no need to better himself by getting more education, and his country has not produced many new inventions. what is missing from a command economy that might explain victor’s attitude and very few inventions coming from his country? *
a. profit motive and private ownership
b. competition and consumer sovereignty
c. government regulation and profit motive
d. competition and private ownership
is writing an answerξ
3. classical economics assumes people are rational and logical while behavioral economics adds psychology to the mix.
a major theory in classical economics is that human beings are rational and, given the necessary information they will make rational decisions and act rationally, however, behavioral economics assumes that people are irrational players.