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In 2-3 paragraphs respond:
Much has been made of the fact that people don't consistently act with scientific rationality. What is meant byrationality?
Consider the three "systematic mistakes" discussed in your text. It is possible to act irrationally simply because people can be "forgetful, impulsive, confused, emotional, and shortsighted (Mankiw 472)."
What are the costs of making those "systematic mistakes"?
Is it possible to act "irrationally," or is rationality defined by the individual's approach to decision making?
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