Question

Economic theory assumes that people are rational actors who always act in self-interested ways, attempting to maximize their own gains. Which of these statements about research into whether these ideas would influence cooperation levels of economics majors and economists are accurate and which are not?

A. Evidence supports the contention that training in the discipline of economics encourages people to act more selfishly.
B. One study found that economists were just as likely to donate to charities as noneconomists.
C. Research was based on the philosophical assumption that society is best served if people are more inclined to cooperate.
D. In a study using the prisoner's dilemma, economics majors behaved far less cooperatively than other students.

Answer 1

In economic theory, individuals are portrayed as self-interested, but this is an oversimplification; indeed, economists like Adam Smith recognized the altruistic aspects of human nature. Option A is the correct answer. Research findings on whether economists act more selfishly are mixed, with some evidence showing economists are equally charitable as non-economists. While economic training is sometimes criticized for promoting selfishness, it's important to account for the dual nature of human motivations.

Step-by-step explanation:

The economics approach postulates that individuals are rational actors who pursue their self-interest, often implying selfish behavior. Critics, however, believe that economic training should not solely focus on self-interest and that moral considerations should teach individuals to care more about others. Despite the perception that economists are more selfish due to their training, this is not always supported by empirical evidence. Some studies have shown that economists are as likely to donate to charities as non-economists, challenging the notion that training in economics inevitably leads to more selfish behavior. When analyzing human behavior in economics, it is imperative to remember the dual nature of self-interest and altruism, as highlighted by Adam Smith, known as the father of modern economics. Smith acknowledged the complexity of human motivations, recognizing that people can display altruistic behaviors alongside self-interest.

In the context of the presented statements, Statement A is somewhat supported; however, there is not a consensus among researchers that training in economics absolutely encourages more selfish behavior. Statement B contradicts the assumption that economists are less likely to engage in charitable giving. Regarding Statement C, the research can be influenced by a philosophical assumption that cooperation is beneficial for society, but this is not universally accepted or proven. Statement D would require specific citation as outcomes can vary widely in prisoner's dilemma experiments, and there is debate on whether being less cooperative is inherently linked to studying economics. Overall, while self-interest is a simplified perspective in economic theory, real-world evidence suggests that cooperation and altruism are also ingrained in human nature.