When economists say that people act as rational decision makers, that means
A)they gather all relevant information before making their purchases
B)once a pattern of behavior has been established, people tend to become set in their ways
C)people respond in predictable ways to changes in costs and benefits
D)people rarely make errors when they are permitted to make transactions
E)once made, decisions are never reversed

Question

Quizplus · Accepted Answer

Economists believe that people act as rational decision makers because they respond in predictable ways to changes in costs and benefits. In other words, people weigh the pros and cons before making a decision, and their choices reflect their own self-interests. However, this does not mean that people always gather all relevant information before making a purchase, are set in their ways, never make errors, or never reverse their decisions.

When Economists Say That People Act as Rational Decision Makers