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Chapter 1: Q 19 (page 16)

During her years of college, Dominique discovered that her three favorite subjects were astronomy, chemistry, and political science. She chose to major in astronomy because she had seen data indicating that science majors earn higher-than-average wages and because she liked astronomy better than both chemistry and political science. Upon graduation, however, she learned that average wages in chemistry fields were 20percent higher than average wages earned by astronomers. Did Dominique's behavior violate the rationality assumption?

Short Answer

Expert verified

Yes, she used the rule of thumb method and followed bounded rationality by considering the easiest choice.

Step by step solution

01

Step 1. Rationality Assumption.

Rationality assumption states that a person should consider every possible choice for decision-making and then choose the best alternative.

02

Step 2. Reason

Yes, she used the rule of thumb method and followed bounded rationality by considering the easiest choice. She did not take into account the wages and just looked for the science subject she liked the most.

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