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(DISS 7) RATIONAL CHOICE Students'
(DISS 7) RATIONAL CHOICE Students'
(DISS 7) RATIONAL CHOICE Students'
EVALUATION:
Directions: Read the situation carefully and circle the letter of the correct answer.
A. In a group of 40 schoolchildren, the teacher asks the pupils if they would prefer a balloon or cotton
candy as part of an experiment. 20 children indicate a preference for balloons. The other 20 children
prefer cotton candy. The teacher gives out 20 balloons and 20 cotton candies randomly to the children.
Because the process is random, some children receive their preferred item while others do not. Using
the theory of rational choice, if the children were given the option of trading what would we expect to
see in terms of children trading balloons and cotton candies? Explain your answer.
a) No trading would occur.
b) We would expect the children who receive their preferred item to give it away to other children
who did not receive their preferred item.
c) Because there are enough balloons and cotton candies to meet the exact preferences of every
child, we would expect those children who didn't receive their preferred item to trade with
each other. In the end, everyone would receive their preferred item.
d) We cannot predict what the children would do.