Economics does not study correct or incorrect behaviours but rather it assumes that economic agents behave ________, meaning they make the best decisions given their knowledge of the costs and benefits.
A)equitably
B)rationally
C)emotionally
D)selfishly

Question

Quizplus · Accepted Answer

Economics assumes that economic agents, such as individuals, firms, and governments, make rational decisions based on their preferences, constraints, and available information. Rationality implies that economic agents weigh the costs and benefits of their actions and choose the option that maximizes their utility or profit, given their limited resources. Although some economic models may include other factors such as emotions, psychology or social norms, the rational choice framework is a widely used and powerful tool in economics.

Economics Does Not Study Correct or Incorrect Behaviours but Rather