ECON-2006EG Study Guide - Quiz Guide: Opportunity Cost, Sunk Costs, Normative Science
7 Mar 2021
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Approaching hypothesises by : confronting the hypothesis with evidence before accepting it, looking at the motivation, especially focusing on the motivation of each individual"s welfare. Exceptions exist (individual altruism: cost benefit-comparison of changing the existing hypothesis (utilitarianism, evaluation, statement on the hypothesis (change/ no change) Having more of one means having less of another (example studying, sleeping and partying: cost-benefit principle (utilitarianism) action should be taken if benefits outweigh costs. Just an abstract (simplified, only major aspects) model, assuming that the individual is rational, which is impossible (bounded rationality: example: consider that brain-training guy from the mom lecture. As an educational psychologist, he may say that it does not make sense to learn more than 4 hours a day. However, for a student it is (or at least should be) impossible to reduce learning to four hours during the whole period.
