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The analysis of human behavior presented in chapter 2 uses the concepts of preferences, beliefs, and constraints. the book below:
Understanding Capitalism: Competition, Command and Change 4th Editionby Samuel Bowles, Richard Edwards and Frank Roosevelt (2017), New York: Oxford University Press.
a. Define and explain each of these concepts. These concepts are: preferences, beliefs and contrains.
b. Next, explain how each of these concepts relate to individual decision- making.
c. Finally, using the textbook and other reading material assigned, discuss the extent to which human behavior is influenced by their environment. (You may answer that one’s environment has no influence on behavior.)
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