Economists assume that rational behaviour is useful in explaining choices people make:
A)because irrational people do not make economic choices.
B)even though people may not behave rationally all the time.
C)because individuals act rationally all the time in all circumstances.
D)even though people rarely, if ever, behave in a rational manner.

Question

Quizplus · Accepted Answer

Economists acknowledge that people may not always behave in a strictly rational manner, but they still assume that rational behaviour is a useful framework for understanding the choices people make. This means that while irrational behaviour may occur, it is not the norm and does not invalidate the usefulness of studying rational behaviour in economics.

Economists Assume That Rational Behaviour Is Useful in Explaining Choices