Susie knows that too many sugary treats, while delicious when eaten, have long-term adverse effects on weight and health. Based on this information, a neoclassical economist would expect Susie to

A) carefully weigh the short-term benefits against the long-term costs and make a rational decision about how many treats to eat.
B) eat more sugary treats than is optimal, as she likely gives more weight to present events and outcomes than to ones in the future.
C) give away most of her sugary treats in an effort to resist temptation.
D) determine her fair share of the sugary treats available, and only eat those.

Question

Akshit Sharma · Accepted Answer

Final Answer : A, Explanation :  Neoclassical economics assumes that individuals have rational preferences and are capable of making judgments towards their subjectively defined ends. Thus, it would expect Susie to make a rational decision by weighing the short-term benefits against the long-term costs.

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