The assumption that individuals act rationally implies that
A)people think only of themselves and disregard the well-being of others
B)people undertake all those activities that yield benefits to themselves
C)people only consider the costs of an activity to decide whether it is worthwhile
D)the greater the cost of a charitable deed to a benefactor, the more likely he or she is to perform that deed
E)people implicitly calculate the costs and benefits of an activity to decide if it is worthwhile

Question

Quizplus · Accepted Answer

The assumption that individuals act rationally means that people implicitly calculate the costs and benefits of an activity to decide if it is worthwhile. It does not necessarily imply that people think only of themselves or disregard the well-being of others, undertake all activities that yield benefits to themselves, or that the greater the cost of a charitable deed, the more likely they are to perform it.

The Assumption That Individuals Act Rationally Implies That