In trying to figure out why movie theater pop corn costs so much, an
economist doesn't just go out and ask a theater owner. The same with
asking restaurant owners why they don't raise prices when they have line
ups. But, when the the government asks people if they've stopped
looking for work, we assume that the person knows his motives, (i.e., he's
_decided_ to stop looking for work). We don't look for other reasons for
why he might have dropped out (maybe have been forced out) of the labor
force. So, why do economists sometimes believe people know their own
motivations, but most often don't?

Daljit Dhadwal

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